AIG Absorbing $5 Billion in Losses

The battered insurer will take on losses from 12 units, according to a Bloomberg report.
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American International Group

(AIG) - Get Report

plans to absorb as much as $5 billion in losses from its insurance units hit by $13 billion in writedowns,

Bloomberg

reported Friday.

Bloomberg

, citing Christopher Swift, vice president for life and retirement services, said AIG was increasing the amount of losses it would take on from a dozen units, up from an earlier commitment of $500 million. It also may inject an undisclosed amount of capital in some units, the article said.

AIG has been reeling since being forced to raise $20 billion to cover

$7.81 billion in first-quarter losses

tied to the writedowns of its portfolio of credit derivatives and mortgage-related products. The company earlier this month

fired CEO Martin Sullivan

and replaced him with Chairman Robert Willumstad.

This article was written by a staff member of TheStreet.com.