Record losses for AIG

AIG insisted that, despite the difficult environment and the resulting effect on its overall financial performance for the first quarter, the group’s core insurance businesses are continuing to perform satisfactorily

New York-based AIG has raised over $15bn in new capital after suffering record losses in the past two quarters driven by write-downs of derivatives linked to subprime mortgages. AIG says its new capital, which was raised through the sale of common stock, convertibles and hybrid securities, will enhance its ability to grow while maintaining the strength to withstand potential short-term market volatility.