The resurrection of AIG continues, with the US insurance giant reporting a net profit of $US2.3 billion ($2.2 billion) for the three months to June 30, up 27% from $US1.8 billion ($1.7 billion) for the corresponding period last year.

The profit was almost double that forecast by analysts, with an improved performance from its insurance operations the driver behind the profit bump.

AIG President and CEO Robert Benmosche lauded the insurance business for posting “solid profits” for the quarter.

The property and casualty business, Chartis, posted net profit excluding investment income of $US936 million ($895 million) for the quarter, up 20% from $US783 million ($748 million) for the second quarter last year, while the combined operating ratio improved from 104% to 102%.

“At Chartis, second-quarter results demonstrated the continued progress in strategic initiatives to improve the mix of business, loss ratio and risk selection, all of which ultimately increases the intrinsic value of our global franchise,” Mr Benmosche said.

He says the continuing improvement in AIG’s performance has enabled the US Government to reduce its assistance to AIG, after it had to be bailed out during the global financial crisis in 2008.

“We are proud of what we have accomplished and believe we are close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit.”

On the imminent rebranding of Chartis and life insurance arm SunAmerica to AIG, Mr Benmosche said: “Every day, the people of AIG continue to make significant progress in restoring our reputation in the communities we serve; respect for the AIG name has endured among our partners and customers.”