A recent article by a knowledgeable and respected business reporter, Mary Williams Walsh, highlights the poor results displayed by Life Insurance Companies and by AIG both: "A.I.G. Posts its First Quarterly Profit Since 2007" p. B2, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, August 7, 2009).
Premiums from AIG's domestic Life Insurance Companies reportedly declined 15% from the same period one year ago. Id. A former AIG Life Insurance actuary reportedly surveyed the financial results of all of these Life Insurance Companies as though a State Insurance Regulator were examining them. The former actuary concluded that 7 of AIG's 8 Life Insurance Companies "could have been deemed insolvent and shut down last year had it not been for the federal rescue." Id.
"Over all," AIG's reported net income for 2Q 2009 was $1.8 Billion or $1,800,000,000.00. Federal Taxpayer Funds account for $1.5 Billion or $1,500,000,000.00. The resulting profit of some $311 Million or $311,000,000.00, is AIG's first reported quarterly profit since 2007. Id.
Parenthetically, it is reported in the same article that "[p]remiums for insurance sold [by AIG] to businesses declined by 19 percent from a year earlier," id., although it is unclear what is meant by "insurance sold to businesses" exactly. The idea is never explained, and it is not mentioned in the published article a second time.
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