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American International Group, Inc. Message Board

  • bluecheese4u bluecheese4u Feb 21, 2013 6:10 PM Flag

    AIG Reports Fourth Quarter Operating Income of $290 Million, Including After-Tax Storm Sandy Losses of $1.3 Billion; Fourth Quarter Net Loss of $4.0 Billion

    AIG Reports Fourth Quarter Operating Income of $290 Million, Including After-Tax Storm Sandy Losses of $1.3 Billion; Fourth Quarter Net Loss of $4.0 Billion

    Fourth quarter net loss reflects $4.4 billion net loss on sale from discontinued operations (International Lease Finance Corporation)
    Book value per share, excluding accumulated other comprehensive income (AOCI), of $57.87, up 15.5 percent for the year
    Remaining AIA shares sold for $6.5 billion and a realized gain of $240 million
    Department of the Treasury sells last of its AIG shares

    NEW YORK--(BUSINESS WIRE)--Feb. 21, 2013-- American International Group, Inc. (NYSE: AIG) today reported a net loss of $4.0 billion, or $2.68 per diluted share, for the fourth quarter ended December 31, 2012, compared with net income of $21.5 billion, or $11.31 per diluted share, in the prior year quarter. Full year 2012 net income was $3.4 billion, or $2.04 per diluted share, compared with $20.6 billion, or $11.01 per diluted share, for the full year of 2011.

    After-tax operating income in the 2012 fourth quarter was $290 million, or $0.20 per diluted share, compared with $1.5 billion, or $0.77 per diluted share, in the prior year quarter. After-tax operating income for the full year of 2012 was $6.6 billion, or $3.93 per diluted share, compared with $2.1 billion, or $1.16 per diluted share, in 2011.

    Fourth quarter and full year 2012 results included pre-tax catastrophe losses from Storm Sandy of $2.0 billion ($1.3 billion after-tax). Net income for the fourth quarter and full year of 2012 included a $4.4 billion net loss on sale from discontinued operations associated with the agreement to sell International Lease Finance Corporation (ILFC), which reduced book value per share by $2.97 per share. Net income for the fourth quarter and full year of 2011 reflected a U.S. consolidated income tax deferred tax asset valuation allowance release of $19.3 billion and $18.4 billion, respectively.

    “AIG’s operating profit this quarter shows the power and financial strength of our diverse global franchise,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We achieved these operating profits in spite of Storm Sandy – the second largest single catastrophe event for AIG in the U.S. These results show how the people of AIG are working together and getting the job done.

    “In so many ways, this was an historic quarter -- from the positive return we delivered to the American taxpayers on the investment in AIG, to our ability to monetize non-core assets, and to again becoming a unified AIG. When history is written, we will look back and see that by the end of 2012, a new era for AIG had begun. As one AIG, we will expand on our accomplishments. Teams from our core businesses are working together, sharing experiences, and providing complementary skill sets to create new opportunities and better serve our customers. This partnership is AIG’s global foundation for growth.”

    Mr. Benmosche concluded, “We still have work to do, but we have confidence in the opportunities we will create in 2013 and beyond. We remain committed to investing in our business, but expect to take continued actions to improve our efficiencies through technology and streamlined work processes.”

    Liquidity, Capital Management, and Other Significant Developments

    AIG shareholders’ equity totaled $98.0 billion at December 31, 2012.
    During the fourth quarter of 2012, the U.S. Department of the Treasury (Treasury) completed a registered public offering of its remaining shares of AIG Common Stock for proceeds of approximately $7.6 billion, marking the full repayment of America’s financial support of AIG. Since 2008, through asset sales and other actions by AIG, the Federal Reserve, and Treasury, the U.S. Government recovered its full $182.3 billion commitment to AIG, plus a combined positive return of $22.7 billion. Treasury continues to hold warrants to purchase approximately 2.7 million shares of AIG common stock, the sale of which is expected to provide an additional positive return to taxpayers.
    In December 2012, AIG sold its remaining stake of approximately 1.65 billion ordinary shares of AIA Group Limited (AIA) recognizing gross proceeds of approximately $6.5 billion and a gain of $240 million. For the full year, AIG recognized gains of $2.1 billion from AIA.
    In December 2012, AIG entered into an agreement to sell up to a 90 percent stake in ILFC to an investor group. The transaction, which is subject to required regulatory approvals, including all applicable U.S. and Chinese regulatory reviews and approvals, is expected to close in the second quarter of 2013. At closing, AIG will retain at least a 10 percent ownership stake in ILFC subject to dilution for management issuances (which, over time, would reduce AIG’s ownership by one percentage point).
    Distributions from insurance operations totaled $1.4 billion in the fourth quarter of 2012, and $5.3 billion for the full year of 2012, in each case excluding a capital contribution to AIG Property Casualty of $1.0 billion following Storm Sandy.
    AIG Parent liquidity sources amounted to $16.1 billion at December 31, 2012, up from $11.6 billion at September 30, 2012, reflecting the sale of AIA shares.

    AFTER-TAX OPERATING INCOME (LOSS)

    aigDOTcom/press-releases_3171_438003.html

 
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