A.I.G.’s Chartis unit also had $864 million in catastrophe losses related to the March 11 earthquake in Japan. The company, one of the top foreign insurers in Japan, had warned of substantial quake charges.
Shares of A.I.G., which have lost more than 30 percent of their value since late January, fell nearly 1.6 percent in after-hours trading, to $30.30. Earlier they had fallen 85 cents, or nearly 2.7 percent, to close at $30.79.
The loss from continuing operations was $1.18 billion, or $1.41 a share, compared with a profit of $2.09 billion, or $2.16 a share, in the period a year ago.
A.I.G., in a statement, focused on the net income figure attributable to A.I.G., which it said was $269 million, down from $1.8 billion in the year-earlier period.
The Fed charge totaled $3.3 billion and was related to the recapitalization deal that closed in January. That arrangement paid off the Fed and left the Treasury with a 92 percent stake in the company.
The Treasury is expected to start selling down that position this month. The price is unclear. A.I.G.’s shares have fallen since the recapitalization closed, and they are near the government’s $28.72 break-even point.
On an operating basis, A.I.G. said its Chartis property and casualty business increased net written premiums nearly 20 percent in the quarter, representing a pickup in its United States operations and the consolidation of Fuji Fire and Marine in Japan.
A.I.G.’s domestic life insurer, SunAmerica, reported flat operating income, though its crucial annuity business continued to rebound after difficulties during the financial crisis, when the company took a $182 billion bailout.
During the quarter, A.I.G. closed the sale of AIG Star and AIG Edison businesses to Prudential Financial. The proceeds led to a $1.65 billion profit from discontinued operations in the period.
Article source: http://feeds.nytimes.com/click.phdo?i=eade14cb24fd8b978325b4a0f5bf1a2d
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