Financial Report: 2011 Results from AIG; Swiss Re and RSA.
While its core operating units such as Chartis - the property & casualty insurer - and Sun America -the life assurer - remain profitable; AIG's surge in fourth-quarter earning was largely booked on the back of nearly $20bn worth of credits on past tax losses. This "tax shield" will no doubt drive further sales in 2012 of AIG investments that may have had capital gains including the sale of International Lease Finance Corp - its aircraft leasing business.
However, the big unknown, in terms of AIG's ongoing rehabilitation, is still the pending law suit by from AIG's former Chairman & CEO - Hank Greenberg. The latest twist in this game of high-stakes poker was the US government urging a federal claims court to dismiss the suit, which is seeking $25bn in compensation, on the basis that Hank is seeking to "rewrite the rescue agreement"..