AIG has indicated it may need more US Government aid to stay afloat after reporting an annual loss of $US10.9 billion ($12.1 billion).

Heavy interest charges continue to weigh heavily on AIG, which recorded a fourth-quarter loss of $US8.9 billion ($9.9 billion).

The giant group has received more than $US180 billion ($201 billion) in aid from the Government to prevent its collapse after a disastrous investment in credit default swaps.

During the fourth quarter AIG incurred $US6.2 billion ($6.9 billion) in interest and amortisation expenses and a $US2.8 billion loss on the sale of Nan Shan Life Insurance.

In a report to the US Securities Exchange Commission, the group warned it may require more federal support to ensure it remains a going concern.

But despite the heavy losses, AIG claims its business units have “continued to stabilise and the results reflect continued improvement in the global financial markets”.

Though general insurance net premium has fallen 14% to $US30.7 billion ($34.2 billion) during the year, investment income has risen markedly across AIG’s portfolios.

The annual loss compares to $US99.7 billion ($111.1 billion) at the same point last year.

AIG President and CEO Robert Benmosche says the company has made “great progress” in stabilising and strengthening AIG’s insurance businesses, “reducing AIG financial products exposures and positioning certain businesses for sale”.