American International Group posted a net loss of $7.8 billion for the first quarter of this year, citing the weak economic climate.
The New York-based insurer reported the news after the markets closed.
The loss translates into a net loss per share of $3.09 compared to a net gain of $1.58 for the comparative period.
In a statement the company blamed the weak U.S. housing market, disruption in the credit markets and equity market volatility for the "substantial adverse effect on its results."
The company also announced that it plans to raise $7.5 billion through stock offerings. The company plans to raise a total of $12.5 billion in capital.
AIG said it increased its quarterly cash dividend by 10 percent to 22 cents a share payable on Sept. 19 to shareholders of record as of Sept. 5.
The company announced that it has promoted Steven J. Bensinger, formerly executive vice president and chief financial officer, to vice chairman, financial services.
The company is currently searching for a new CFO and said it plans to create the position of chief administrative officer to allow greater focus in both financial and administrative matters.
The company will hold a financial analyst's call on Friday.
(This story was updated on May 9 at 8:41 a.m.)
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.