AIG Q3 losses widen on market turmoil

Market turmoil drove insurance giant AIG's losses higher in the third quarter, the company said Thursday, as well as a large writedown in its aircraft leasing subsidiary. AIG, which collapsed and took a massive government bailout to survive during the financial crisis three years ago, said it lost $4.1 billion in the quarter ended September 30, compared to $2.5 billion a year earlier. On an adjusted per-share basis, the loss was $1.60, nearly double the 84 cents loss a year earlier. "The results for the quarter were negatively affected by several macroeconomic drivers, including declining equity markets, widening credit spreads and declining interest rates," the company said in a statement. "Declining equity markets contributed to a loss of $2.3 billion in the market valuation of AIG's holding of AIA Group Limited ordinary shares." Meanwhile, the company said the board had agreed to a buyback program for up to $1 billion in shares. AIG's share price was down 2.15 percent to $24.10 in after-market trade.