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Assets sale increased the profit of AIG to 11.2 billion USD

The U.S. insurance giant - American International Group (AIG), announced that the net profit of the company jumped to 11.2 billion dollars in the fourth quarter of 2010. This happened due to assets sale. The increase in profit is due to the sale of several business units of AIG, and the initial public offering (IPO) of its life insurance subsidiary AIA Group in Asia. They bring to the company's revenue about 17.6 billion dollars. Through the sale of the AIG assets made the next step towards the recovery of the loan, which was obtained from the U.S. government at the height of the financial crisis in autumn 2008. If, however, exclude gains or losses from sale of business units, and other one-off effects from the sale of assets, AIG realized an operating loss after tax of EUR 2.2 billion compared with a loss of 1.3 billion dollars same period in 2009. Its shares rose by 1 percent to 40.84 dollars after the regular session of the New York Stock Exchange. Their price was raised by 72% over the past 12 months, but the beginning of this year fell by 16 per cent. AIG, which nearly went bankrupt in 2008, plans big stock sale this spring in order to pay the U.S. government, which holds 92% of its capital. The government will also sell part of its share through the planned IPO. On January 14th, AIG paid to the regional branch of the Federal Reserve in New York part of its debt to the state amounting to 21 billion dollars.
On February 1st, AIG completed the sale of its two Japanese subsidiaries, AIG Star Life Insurance and AIG Edison Life Insurance, the U.S. life insurance Prudential Financial for 4.2 billion dollars in cash. This came after the IPO of AIA Group in late October last year, became the largest in the history of Hong Kong.