AIG Posts $1.82 Billion Profit

The insurance company reported its first quarterly profit since the third quarter of 2007 as many of its businesses stabilized.
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Updated from 7:26 a.m. EDT

NEW YORK (

TheStreet

) - Embattled insurer

American International Group

(AIG) - Get Report

swung to a second-quarter profit of $1.82 billion, or $2.30 a share, as many of its businesses stabilized in the period.

It's the first quarterly profit the insurer has reported since the third quarter of 2007.

In the second quarter of 2008, AIG posted a loss of $5.36 billion.

Analysts surveyed by Thomson Reuters forecast AIG would report second-quarter earnings of $1.67 a share.

Shares of AIG were higher by 6% to $23.86 in premarket trading.

"While our insurance companies' operating results remain challenged, largely driven by weak economic conditions and the lingering effect of negative AIG events earlier in the year, performance trends stabilized from the first quarter," said CEO Edward Liddy in a statement Friday. "We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due in part to accounting charges related to ongoing restructuring activities."

-- Reported by Joseph Woelfel in New York

.