Credit crisis forcing US insurer AIG to extreme measures: ReportSeptember 14th, 2008 - 6:57 pm ICT by IANS
New York, Sep 14 (DPA) US insurer AIG, suffering from a declining share price and facing a possible downgrading of its credit rating, is being forced to extreme measures, including perhaps selling off subsidiaries to extricate itself from billions of dollars in losses,the Wall Street Journal reported in its online edition Sunday.Citing an AIG insider, US business journal said AIG was considering a teleconference with analysts Monday, at which the process of restructuring would be outlined.
AIG, which has a worldwide presence in the insurance industry, has suffered a 45-percent drop in its share price over just a few weeks.
The company lost more than $18 billion dollars in the last three quarters due to enormous write-offs from the ongoing US credit crisis.
The concern in mid-June led to a change in chief executives, with new head Robert Willumstad announcing difficult cost-cutting measures and stressing that there would be “no sacred cows.”
He said he would present his plans for the future of the insurer by the end of September.