Bloomberg News
NEW YORK Shares of American International Group Inc. may show their first annual loss since 1990 as investors fret that the global economic slowdown will stunt growth at the second-biggest financial-services company.
Shares of AIG, which gained an average of 29% a year between 1991 and 2000, beat the Standard & Poors 500 Indexs average 17% rise in that period, and outpaced every financial stock except Merrill Lynch & Co. This year, AIG shares have declined 21%, to $76.67.
The drop, which has sliced the value of chairman and chief executive Maurice Hank Greenbergs holdings by about $860 million, reflects investors concern over the effects of slowing economies in Asia and potential liabilities in the United States. And price increases of as much as 30% at its flagship insurance businesses may not boost profits as expected, some investors say.
