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AIG loses $7.8 billion in 1Q on swap, investment charges

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May 8, 2008

NEW YORK—American International Group says it swung to a $7.81 billion loss during the first quarter due to losses in credit swaps and mortgage-related operations.

AIG says it lost $3.09 per share, compared with earnings of $1.58 per share, or $4.13 billion, during the year-ago period.

Analysts surveyed by Thomson Financial, on average, forecast a loss of 76 cents per share.

New York-based American International Group Inc. lost $9.11 billion in its credit-default swaps portfolio, which promise to cover losses on $579 billion in bonds or other kinds of debt.

Losses in its investment portfolio, which includes debt backed by troubled mortgages, totaled $6.09 billion.

AIG says it lost $352 million in its mortgage insurance business, United Guaranty.

© Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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