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.