The bailout of AIG (AIG.N) was costly not just to the taxpayer but also to the company itself, reflected in the $2.4 billion loss AIG reported Friday for the third quarter. This amounted to a loss of $17.62 per share, compared to net income of $455 million, or $0.68 per share, in Q3 of 2009.
The loss, according to AIG, was due in part to restructuring costs of $4.5 billion that included the sale of its American General Finance division to Fortress Investment Group (FIG.N) (a loss of $1.9 billion, previously announced) and goodwill (also previously announced) and tax items at $1.3 billion each. In addition, there was a $1.2 billion amortization of the prepaid commitment fee asset related to bailout funds, as well as other factors.
The company reported that income from continuing insurance operations, at $2.1 billion, was stable.