AIG Down 4% as Weakness in Core Insurance Units Overshadow S
February 25, 2011
American International Group, Inc. (AIG) has given up an opening bell gain and is under selling pressure, down 4% and just at its session low of $38.53 after a swing to a Q4 profit was overshadowed by weak performance by its core insurance units. The stock slipped 16 cents to open at $40.27, but rose to a high of $40.89, before reversing direction. It's currently testing session lows at $38.53, down $1.90, or 4.70%. The company reported a Q4 profit of $16.60 compared with loss of $65.51 a year earlier, helped by asset sales. The Thomson Reuters mean analyst estimate was not available. Included in the 2010 fourth quarter results is a previously announced $4.2 billion net charge to strengthen Chartis loss reserves and gains of $17.6 billion from the sale of divested businesses, primarily from the proceeds of the AIA Group Limited (AIA) initial public offering and a gain of $4.1 billion from the sale of American Life Insurance Company (ALICO), included in discontinued operations.