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AIG losses tip $99bn

Troubled insurance giant AIG has revealed that it lost just over $99bn, or £69.54bn, in 2008.

For the fourth quarter of 2008, AIG reported a net loss of $61.7bn or $22.95 per diluted share, with an adjusted net loss of $37.9bn, or £26.8bn or £10 per diluted share, totalling just less than $100bn or £69.54 in losses.

AIG says its results in the fourth quarter were negatively affected by continued severe credit market deterioration, particularly in commercial mortgage backed securities, and charges related to ongoing restructuring-related activities.

The US Treasury will, thanks to the continuing losses, create a new equity capital facility, which allows AIG to draw down up to $30bn, or £21.22bn as needed over time in exchange for preferred stock to the U.S. Treasury. This, on top of the $40bn, or £28.29 the government has already invested into the insurer.

AIG chairman and chief executive Edward M. Liddy says: “The economy and capital markets remain in turmoil and we are taking additional steps to preserve the value of our businesses and maximize the ultimate proceeds for the benefit of all stakeholders, including US taxpayers.”


FTSE closes in on 3,500 mark

The FTSE 100 is set to fall through the 3,500 barrier having closed today at 3512.09.

A burden on societies

Last week, some of the biggest building societies posted profits, no mean feat in itself, but profits that were slashed by as much as 50 per cent thanks to Financial Services Compensation Scheme levies hiked up in the wake of the Icelandic bank crash and the Bradford & Bingley bailout.

 Article 50 Q&A: The negotiations to watch for 

Holly Cassell, Assistant Manager of the top-performing Neptune UK Mid Cap Fund, discusses the potential near-term impact of Article 50 and the Brexit negotiations that she believes investors should pay most attention to. Read article here Important information  Investment risks  Neptune funds may have a high historic volatility rating and past performance is not a […]


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