By Paritosh
Bansal
NEW YORK (Reuters) - American International Group
Inc is expected to post a first-quarter loss on
Thursday, but the embattled insurer's results will
not trigger a new capital injection from the U.S.
government this time, a source familiar with the
matter said on Monday.
The loss in the first quarter is expected to be
significantly lower than its record fourth-quarter
loss of $61.7 billion, the source said, adding that
there would be no new bailout announced with the
results.
The source declined to be named because the
results haven't been announced yet. AIG could not
immediately be reached for comment.
This would be the first quarterly results
announcement since AIG's September rescue that the
government is not stepping in to aid the insurer. It
would also be AIG's sixth consecutive quarterly
loss, with the last five already adding up to more
than $100 billion.
AIG's fourth-quarter loss was the largest
quarterly loss in U.S. corporate history and was
announced in March along with a revised bailout
package, which included a new $30 billion lifeline
for the troubled insurer among other terms.
Investment losses, writedowns and restructuring
charges were the largest drivers of the
fourth-quarter loss, more than wiping out operating
profits posted by its insurance subsidiaries.
AIG posted a net loss of $24.47 billion in the
third quarter, which too was accompanied by an
easing of the terms of the bailout. It posted a net
loss of $7.8 billion in the first quarter of last
year.
Overall, the government has committed some $180
billion in its efforts to rescue AIG, including
roughly $80 billion in loans that the insurer is
trying to repay through divestitures.
Earlier on Monday, another source said AIG was
near a deal to sell its Japanese headquarters for
about $1 billion.
A Japanese insurance company is expected to buy
the prized building in the Otemachi section of
Tokyo, although at least two parties were looking at
the property, the source said.
A deal for the building, which overlooks the
Imperial Palace, is expected to be announced later
this week, the source said. The source did not want
to be named because the deal has not been announced
yet.
A sale of the Tokyo building would be one of the
insurer's largest divestitures since its September
rescue.
The largest asset sale was announced last month
when it agreed to sell its U.S. auto insurance
business to Zurich Financial Services for $1.9
billion.
So far, AIG has reached deals for a dozen
businesses, raising more than $4 billion.
AIG Chief Executive Edward Liddy told Reuters in
late April that the company was also reviewing
second-round bids for an asset management business
and an aircraft lessor. Together, sales of those
businesses are expected to bring in more than $5
billion.
(Editing by Carol Bishopric and Muralikumar
Anantharaman)
