American International Group (AIG) has recorded its first profit in seven quarters on August 7th.
The insurance company posted second-quarter net earnings of USD 1.82 billion, up from the net loss of USD 5.35 billion that was made a year previously.
This equates to a profit of USD 2.30 per share, and stock in the company has risen by USD 2.13 to USD 24.66 in pre-market trading as a result, Reuters reports.
Chairman and chief executive officer Edward Liddy said that the results are an indication of “stabilization in certain [areas] of our businesses”.
“While our insurance companies’ operating results remain challenged performance trends stabilized from the first quarter,” says Edward Liddy, adding that the insurer reduced its net realized capital losses during the three-month period, with new accounting guidance and “improved market conditions” also helping boost performance.
Earlier this year the firm was forced to repay a proportion of the financial aid it had received from the US Treasury after there was public outcry over its decision to award bonuses to staff.
D.C.