Life Insurance Search

General and life insurance company AIG, perhaps best known in the UK for being the sponsors of Manchester United, has announced a massive second quarter loss for 2008.

The New York-based life insurance company, who offer both decreasing and level term life insurance cover, revealed a loss of £2.75 billion for the three months between April and July. This compared unfavourably to the same period in 2007, when the insurer posted a profit of nearly £2 billion.

While around half of the loss is believed to be attributable to losses on mortgage-backed assets, much of it is thought to be attributable to losses on insurance policies, including those in the life insurance sector.

The chief executive of AIG, Robert B. Willumstad, commented, “Our second quarter results were adversely affected by the severe conditions in the housing and credit markets and a very difficult investment environment.

”These results do not reflect the earnings power and potential of AIG's businesses and it is clear that we have a lot of work to do to restore AIG's profitability to where it should be.”