AIG Posts $1.45 Billion Profit for First Quarter
After raking in an impressive $1.45 billion quarterly profit, AIG says it is on its way to repaying the $182 billion government bailout it received in 2008 and 2009. The company already laid out a bailout repayment plan in April in hopes of showing how serious it is in paying back its debts to taxpayers. Now the life insurance company says that its recent profit could make its goal a greater reality.
First Quarter a Good One for AIG
AIG saw a first quarter income of $1.45 billion ($2.16 per share), which compares to a loss of $4.35 billion a year earlier, the company said on Friday. This is good news for the company but is not its first profit.
In fact, AIG has been able to post several profits since it received bailouts in 2008. This recent profit is the third in the past four quarters for the life insurance company.
The Company is on Track for Repayment
In addition to this quarterly profit, AIG has been selling its units in order to raise capital for repayment. In March, it agreed to sell American Life Insurance Company (ALICO) to Metlife for $15.5 billion. In the same month, the company sold its Asian life insurance to Britain’s Prudential PLC for $35.5 billion.
The company believes the sell-offs and profits show that it is stabilizing and essentially on the right track. However, it is still cautious about generating new business in various sectors, including its Chartis insurance unit, due to challenging economic conditions.
Since much of the life insurance company’s profit is coming from investments, some wonder how it will grow profit through internal business. Some say that investors are looking to see this growth or they may not continue to stay on board.