AIG Bailout Borrowing Hits $92.5 Billion

The insurer has $92.5 billion of the total $143.7 billion in facilities available from the government.
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AIG's

(AIG) - Get Report

borrowings under the federal government's bailout lending plan has reached $92.5 billion from the total

$143.7 billion in facilities available

.

AIG has reduced its $122.8 billion federal lending facility by a further $2.3 billion to $81.2 billion as of Wednesday, according to figures released Thursday by the

Federal Reserve

and by AIG insiders. The total paydown in the past two weeks totals $9.1 billion.

AIG's stock closed Thursday down 9.2% at $1.87. The insurance giant is scheduled to report earnings after the market close Monday.

A breakdown provided by AIG Public Relations Director Joe Norton indicates that the core $85 billion facility is now at $61.3 billion, down $4.5 billion from last week. The securities lending facility is at $19.9 billion, up $2.2 billion.

Although he was unable to provide details of the amounts borrowed under the new

commercial paper funding facility

(CPFF) program, Norton said the reduction "is due primarily to access to the CPFF that allowed AIG to make voluntary pre-payments under the $85 billion facility." Norton confirmed that the amounts cannot be directly related due to fees involved in accessing the CPFF. Assuming that the CPFF borrowing is somewhat similar to the payoffs, AIG has at least $11.3 billion of the $20.9 billion facility being used.

AIG is widely expected to announce a significant loss when it reports quarterly results next week, and uncertainty about the announcement has the market volume of shares sharply down from their 10-day average of roughly 98 million shares per day to 69 million shares today.

AIG chairman and CEO Edward Liddy told

Business Insurance

in a Q&A session published Monday that AIG is expecting the serious buyers interested in the assets to be awaiting the third-quarter results. Liddy said "There will be some really good values attached to these various properties."

Liddy indicated that the insurance businesses are doing OK, but said "the market is tough for all insurance companies right now."

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Gavin Magor joined TheStreet.com Ratings in 2008, and is the senior analyst responsible for assigning financial strength ratings to health insurers and supporting other health care-related consumer products, including Medicare supplement insurance, long-term care insurance and elder care information. He conducts industry analysis in these areas. He has more than 20 years' international experience in credit risk management, commercial lending and analysis, working in the U.K., Sweden, Mexico, Brazil and the U.S. He holds a master's degree in business administration from The Open University in the U.K.