American International Group's net income dropped 27 percent in the third quarter as fallout from the subprime mortgage meltdown took a toll on the company's earnings.
The New York-based insurer saw hits taken to its mortgage lending facilities and insurance business in this line of business. The results, reported today, included a $325 million charge in its Financial Product Corp's super senior credit default swap portfolio.
During an analyst's conference call today, AIG President and Chief Executive Officer Martin J. Sullivan said the company is operating in a “very uncertain and volatile market environment.” While the company “has ample resources to weather continued uncertainty to take advantage of market opportunities as they emerge,” he said he was not satisfied with the performance of a number of the company's businesses.
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