AIG to lose up to $5 billion from investments: report

NEW YORK (Reuters) - American International Group Inc AIG.N said it planned to absorb up to $5 billion on losses of sales of investments from a dozen insurance units hit by the subprime meltdown, Bloomberg News reported on Friday.

In an interview, Christopher Swift, vice president for life and retirement services, also told Bloomberg that AIG would inject an undisclosed amount of capital into some of the subsidiaries.

The world’s largest insurer had previously said it would take $500 million of losses on investment sales after the units’ securities-lending accounts took $13 billion of write-downs tied to the subprime-mortgage collapse during the past year, Bloomberg reported.

Such losses were factors cited by ratings agency Moody’s when it downgraded AIG’s credit ratings and kept its outlook negative.

Reporting by Christopher Kaufman; Editing by Lisa Von Ahn