AIG Posts $5.29 Billion Loss - Domestic Brokerage Group has a Profit

The nation's largest business insurer posted its first loss since 2002. American International Group reported its Fourth Quarter results Thursday. The Fourth Quarter net loss was $5.29 billion. At the same point last year, AIG reported net income of $1.31 billion.

The majority of the loss was attributed to write downs and charges sustained in debt swap transactions and the mortgage insurance market. AIG has units that insure sub-prime mortgages and this once profitable market has taken a down turn in the current housing market.

However, AIG's Domestic Brokerage Group reported a 14.5% increase in operating income on lowered claims costs. AIG predicts a continued weak housing market in 2008, but expects to overcome the market owing to its diverse portfolio. AIG held a webcast concerning its Fourth Quarter results this morning and the webcast is archived here for those interested.