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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (9364)	5/8/2008 4:51:04 PM
From: Stoctrash	Read Replies (1) \| Respond to of 33421

AIG posts 1Q loss of $7.8B, plans to raise $7.5B in capital Thursday May 8, 4:47 pm ET By Stephen Bernard, AP Business Writer AIG loses $7.8 billion in 1st quarter on credit default swap and investment portfolio losses NEW YORK (AP) -- American International Group Inc. said Thursday it swung to a $7.81 billion loss in the first quarter due to losses tied to credit swaps and mortgage-related operations and that it plans to raise $7.5 billion through a stock offering. ADVERTISEMENT AIG lost $7.81 billion, or $3.09 per share, during the quarter ending March 31, compared with earnings of $1.58 per share, or $4.13 billion, during the year-ago period. Analysts polled by Thomson Financial, on average, forecast a loss of 76 cents per share. New York-based AIG 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. The capital raising effort will include common stock as well as equity units. The equity units will consist of subordinated debt securities and contracts that require the holders to purchase AIG stock at a future date. No pricing for the offerings was disclosed. Separately, the board of directors approved a 2-cent per share, or 10 percent boost to its quarterly cash dividend, to 22 cents. The dividend will be paid Sept. 19 to shareholders of record on Sept. 5. The company also appointed Steven Bensinger vice chairman of financial services. He previously served as executive vice president and chief financial officer at AIG. He will continue in his current role until a replacement can be found, the company said. Shares of AIG rose 29 cents to $44.44 in after hours trading, after closing at $44.15 in the regular session.