American International Group (AIG) has achieved a net income growth of 11.3% for the second quarter of 2007, compared with the period last year, taking its first-half adjusted income to more than $US9 billion ($10.65 billion).

Showing little sign that income has been eroded by the crisis in the US sub-prime mortgage market, AIG posted adjusted net income of $US4.62 billion ($5.45 billion) for the quarter, excluding capital gains and tax losses.

The half-year result was up nearly 20% on the previous corresponding period, a result AIG President and CEO Martin Sullivan attributed to strong growth in general insurance, life, asset managing and capital market sales.

Operational income in AIG’s general insurance wing rose 18.9%, excluding a one-off $US432 million ($511 million) loss due to an accounting revaluation. Including outstanding losses, second-quarter income in general insurance increased 1.7% to $US3.04 billion ($3.58 billion).

Mr Sullivan said he was very comfortable with the company’s exposure to the US residential market.