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AIG goes from £2.6bn profit to £2.1bn loss

American International Group plummeted to a loss of £2.68bn in the second quarter of this year after a profit of £2.19bn for the same period in 2007.

The company’s general insurance portfolio saw operating income more than halved from £1.56bn in the second quarter of 2007 to £700m in Q2 this year.

Life insurance and retirement services fell by 10 per cent from £1.49bn in the first half of last year to £1.34bn.

Chairman and chief executive Robert Willumstad says the dramatic drop into the red is a result of severe conditions in the housing and credit markets and a very difficult investment environment.

He says: “We are conducting a comprehensive review of all AIG’s businesses with the objectives of improving results, reducing AIG’s risk profile and protecting our capital base.”


The answer is blowing in the windfall

Some advisers believe that Norwich Union with-profits policyholders should not hold out for windfalls from the reattribution process but should move their cash now.

Set an appointed day for move to fees

It seems that my recent letter triggered an adverse response from some of your readers and I trust you will allow me to reply to the various comments made as my purpose is to unify IFAs, not alienate them.


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