AIG

(AIG) - Get Report

reported a wider-than-expected loss Thursday after the market close.

During the first quarter, the company continued to unwind its notorious financial products unit, widely considered one of the prime movers behind the financial crisis. Costs related to those actions contributed the most to AIG's loss in the just-ended quarter, the company said.

The New York-based insurer, which has remained in business only because of U.S. bailout money, reported a loss of $4.35 billion, or $1.98 a share, for the period ended March 31. That's narrower than the year-ago period, when AIG lost $7.81 billion, or $3.09 a share. And in the fourth quarter of 2008 AIG posted the biggest loss in corporate history: $61.7 billion.

Excluding writedowns and other items, the company posted an adjusted net loss of 97 cents a share, far wider than the 6-cent loss analysts were expecting, according to Thomson Financial.

Shares of the company were off nearly 5% in after-hours trading, changing hands recently at $1.86.

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