AIG seeks further fed aid; braces for 2008 loss

AIG confirmed that it is seeking further federal help ahead of the publication of its Q4 and full year 2008 results. Reports in the US media prompted AIG to confirm that it was in talks with the Federal Reserve over “potential new alternatives for addressing AIG’s financial challenges”. AIG is rumoured to be preparing to announce Q4 2008 losses of around US$60bn, which would be the largest quarterly loss recorded in the history of the US. The government took an 80% stake in AIG following a bailout at the end of 2008. The company said it would sell-off parts of the business to help pay the US$60bn loan element of the rescue package. Recently, several companies were reported to be bidding for AIG’s subsidiary American Life Insurance Co (Alico) which has operations in 50 countries and it is also looking for buyers of Asia unit American International Assurances.