AIG punctured by hurricane

Michael Bow
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INSURER AIG yesterday revealed a $4bn (£2.6bn) fourth quarter net loss led by costs from Superstorm Sandy, but better than expected earnings cheered investors.

The group, which last year repaid bailout money given by the US government, booked a $1.3bn after-tax loss from the storm, the second largest US catastrophe ever to hit AIG.

However, operating profit came in at 20 cents a share, better than the minus eight cents predicted, sending AIG shares up last night.