AIG still owes American taxpayers $US120.7 billion ($138.5 billion) for the bail-out funds it received between September last year and April this year.

A report updating the US Congress on assistance given to the insurance giant under the Troubled Asset Relief Program shows asset sales and internal cash flows have so far put a dent of $US61.6 billion ($70.7 billion) in the $US182.3 billion ($209.4 billion) rescue package.

The report says the ultimate success of AIG’s restructuring and repayment efforts remain uncertain, given the reliance on the long-term health of the company, market conditions and continued government support.

Employee numbers at the insurer tumbled by 10,000 – or 8.6% – in first half of this year.