The battered American International Group inc., which is the largest insurance company in US, is back in the black with a 1.8 billion dollars profit in the June 2009 quarter. The profits were primarily due to lower provisioning for future loan losses, and also due to mark-to-market profits on high interest bearing securities.
The company will take longer time to start repaying the loans taken from the government, since any upturn in interest rates will increase the provisioning and also reduce the insurance demand.