AIG (AIG) Posts Q3 Profit, But Warns of Inconsistent Future Results

November 6, 2009 9:11 AM EST

As AIG (NYSE: AIG) continues to recover from the edge of collapse that required a government bailout last year, the company has posted a second consecutive quarterly profit.

American International Group reported 2009 third-quarter adjusted earnings of $2.85 per share, compared to the loss of $68.36 in the same quarter last year. Revenue for the third-quarter came in at $26.05 billion.

"Improved market performance, together with application of the new investment impairment accounting standard adopted in the second quarter of 2009, drove a reduction in net realized capital losses compared to third quarter 2008 and positive valuation changes for our Maiden Lane Interests, as well as increases in partnership and mutual fund income," AIG CEO Robert Benmosche said in a statement.

Benmosche did warn investors that earnings will remain inconsistent as the Company continues to rebuild and restructure.

"We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due to charges related to ongoing restructuring activities," Benmosche stated.

Net income for the Company in the third quarter was $92 million, or 68 cents per share, compared to the loss of $24.47 billion, or $181.02 per share in the year ago quarter.

AIG received a government bailout in September of 2008, which along with other aid packages has totaled $182 billion. The government has an 80 percent stake in the company as a result of the bailout money.

There has been an initial negative reaction to the reported results as shares for AIG have dropped 10.6 percent in premarket trading to a value of $35.10 per share.

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