AIG has reported a net loss of  $US2.66 billion ($2.9 billion) for the second quarter of this year, down from net income of $US1.8 billion ($1.96 billion) in the corresponding period last year.

This resulted in the company reporting a net loss of $US799 million ($871 million) for the first half of this year, up from a loss of $US2.5 billion ($2.7 billion) last year.

The beleaguered US insurance giant was quick to point out that this year’s disappointing second-quarter result was due primarily to a $US3.3 billion ($3.6 billion) “non-cash goodwill impairment charge” related to the sale of Alico, AIG’s second-largest foreign life insurance business.

Without this, second-quarter net income would have been $US1.3 billion ($1.4 billion), up from $US1.1 billion ($1.2 billion) in the second quarter of last year.

This included operating income of $US2.2 billion ($2.4 billion) from continuing insurance operations, mortgage guaranty operating income of $US226 million ($246 million) and $US604 million ($658 million) in income from the Asia life insurance operating segment.

AIG’s Chartis-branded general insurance unit recorded second-quarter operating income of $US955 million ($1.04 billion), down from $US1 billion ($1.09 billion) in the corresponding period last year.