AIG profit fall triggered by natural disasters

Insurance giant AIG has reported a fall in profits because of loan repayments and natural disasters.

American International Group (AIG), was hit hard when it lost $1bn (£610m) from its ongoing operations in the last quarter of the year.

The firm also losr $864m after the 11 March earthquake in Japan, according to Chartis, its global insurance arm.

The company was charged $3.3bn for ending its credit facility with Federal Reserve Bank of New York two years early.

AIG shares, which have lost more than 30 percent of their value since late January, fell about one per cent in after-hours trade to $30.50.