AIG has reported net income of $US2.7 billion ($3.03 billion) for the second quarter, up from $US2.3 billion ($2.58 billion) in the corresponding period last year.

The group’s property and casualty operation had a combined ratio of 102.6%, compared with 102.4%.

The result included catastrophe losses of $US316 million ($354.69 million).

AIG Life and Retirement recorded “robust sales of variable annuities and retail mutual funds, solid growth in fee income, effective spread management and higher net investment income”.

Net income was $US4.94 billion ($5.54 billion) in the six months to June 30, down from $US5.54 billion ($6.22 billion).

“Our profits this quarter illustrate the success of our continued focus on our core insurance operations and ongoing commitment to capital management,” President and CEO Robert Benmosche said.

“Our property and casualty, life and retirement and mortgage insurance businesses all posted strong operating results.

“Our dedication to operating as one unified company is yielding positive results and we continue to believe that the benefits of increased collaboration across our company will build and improve upon this quarter’s strong earnings.”