Sector Snap: Insurers down on AIG bailout, 3Q loss

The results came as the U.S. government announced Monday that it would provide additional financial assistance to the New York-based insurer, giving its shares a boost, but raising worries that problems in the financial sector might be worse than Wall Street anticipated. Shares of most national insurance companies fell.

AIG, which reported a $24.47 billion loss for the third quarter, saw its shares rise 29 cents, or 13.5 percent, to $2.39 in afternoon trading after retreating from a high of $2.84 earlier in the session.

The government said it will pour $40 billion into the company in return for partial ownership. AIG, which got a bailout in September, has so far received a total of $150 billion in government aid.

The news sent shares of other national insurers down. Prudential Financial Inc. fell $2.95, or 8.2 percent, to $31.97, as MetLife Inc. lost 68 cents, or 2 percent, to $33.64.

Allstate Corp. fell 89 cents, or 3.3 percent, to $26.

Shares of several national insurers had fallen steadily in the past month, as broader financial markets grew shaky and the government stepped in to bail out AIG.

Analysts have expressed concern about some of the companies' investment portfolios and feared that insurers may need to raise capital to avoid damaging downgrades from rating agencies.

Insurance brokers Marsh & McLennan Cos. and Aon Corp. also tumbled. Marsh shares slumped 54 cents, or 2 percent, to $24.99, while Aon shares fell 11 cents to $40.14.

Meanwhile, Genworth Financial Inc. regained ground after tumbling Friday afternoon, a day after the insurance company reported a third-quarter loss, withdrew its financial outlook and suspended its quarterly dividend and share-repurchase program.