AIG’s third-quarter result completes an “extraordinary comeback” from the depths of the global financial crisis and a $US182 billion ($176 billion) US taxpayer bailout, CEO Robert Benmosche says.

Four years after its collapse at the height of the credit crunch the insurance giant’s third-quarter after-tax operating income of $US1.6 billion ($1.53 billion) represents a $US4.6 billion ($4.42 billion) turnaround from the corresponding quarter last year.

However, the company has yet to confirm how Hurricane Sandy will affect its bottom line. AIG’s headquarters in lower Manhattan remain without power.

“Our business continuity plans have enabled us to continue to serve our customers and operate nearly without interruption,” Mr Benmosche said.

During the September quarter AIG repaid the final tranche of debt owed to US taxpayers, plus a windfall of $US15 billion ($14.42 billion) after the US Department of Treasury completed two registered public offerings of AIG stock for $US26.5 billion ($25.47 billion).

The US Government still owns 21.5% of AIG but, based on a sale price of $US32 ($30.33) per share, could bank a further $US10 billion ($US9.45 billion) from its remaining 317 million shares.

Mr Benmosche says the company has accomplished “what many thought impossible”.

“Four years after the financial crisis, the people of AIG have completed a remarkable turnaround of this company, one in which we can all take great pride,” he said.

“AIG posted a solid quarter, reflecting the continued strength of our core insurance operations and strong investment returns. We are seeing continued momentum and we’re building for the future by creating a more streamlined, efficient and nimble company.”

AIG’s property casualty, life and retirement and mortgage guarantee operations are all in the black, with after-tax operating incomes of $US786 million ($755.7 million), $US826 million ($794 million) and $US3 million ($2.88 million) respectively.

The investment book more than tripled in value on the previous corresponding quarter to $US428 million ($411.58 million).