American International Group, New York, reported a net loss of $4.1 million, which includes a $931 million decline in the fair market value of AIG's holdings in Maiden Lane III and a $43 million decline in the fair market value of its subsidiary SunAmerica's holdings in Maiden Lane II. The Maiden Lane vehicles were created after AIG received government support to purchase mortgage-backed securities and collateralized debt obligations from the company.
In the third quarter of 2010, AIG lost $2.5 billion.
The United Guaranty mortgage insurance subsidiary had an operating loss of $96 million for the third quarter, an improvement over the operating loss of $124 million one year prior.
The current quarter results at UG include a $22 million loss due to an unfavorable legal ruling. Net premiums written increased over 8% to $206 million for the quarter. New insurance written during the three month period was $5.6 billion, a substantial chunk of the $11.3 billion written by UG in the first nine months of the year.
The mortgage insurance business lost $124 million in the third quarter last year, but posted profits of $13 million in both the first and second quarters this year.
