Giant US insurer AIG has raised its estimate of net income for the past few years by $US500 million ($684.6 million) as it re-examines its accounts for the second time this year.

The company says the latest accounting errors were discovered in the course of an internal review. As a result it will now restate its accounts for 2002 to 2004, and even change some aspects of its 2000 and 2001 accounts.

“AIG’s prior financial statements for those years should therefore no longer be relied upon,” a spokesman said.

The company radically restated five years of accounts in May, after regulators started examining several controversial financial reinsurance deals. It slashed net income between 2000 and 2004 by $US3.92 billion ($5.38 billion).

While the recalculations delayed AIG’s expected third-quarter results – due today – it says net income is likely to be about $US10 billion ($13.7 billion). It expects its total losses from hurricanes Katrina and Rita, net of reinsurance, will be $US1.57 billion ($2.15 billion).