The company booked a 90 CR but lost money. Let Chairman and CEO Evan Greenberg tell you how:
“As a result of an historic drop in interest rates — the lowest level in over 100 years — and an equity market correction driven by Federal Reserve action and a flight to safety by investors, we incurred a substantial charge to book value from a negative mark to market in our variable annuity reinsurance business and our corporate fixed income investment portfolio. In our judgment, the majority of this mark will be transient and will reverse over time making a positive contribution to book value in future quarters.”
He’s referring to $790M in realized capital losses on the quarter, which turned a $759M profit into a $31M loss.