AIG quarterly loss narrows

NEW YORK (Reuters) - American International Group (AIG.N), the insurer bailed out by the U.S. government, reported its sixth consecutive quarterly loss on Thursday, hurt once more by investment losses and writedowns.

AIG had a first-quarter loss of $4.35 billion (2.9 billion pounds), equal to about $1.98 per share, according to a company statement issued after U.S. markets closed on Thursday.

The result was lower than the loss of $7.81 billion, in the same period a year ago.

AIG reported a $61.7 billion loss in the fourth quarter, the largest quarterly loss in corporate history.

Unlike AIG's other quarterly results announcement since its federal rescue last September, the first-quarter announcement did not include a new iteration of its bailout plan.

Overall, the government has stepped forward three times to help the insurer, committing some $180 billion in its efforts to rescue AIG. The aid includes some $85 billion in loans that the insurer is trying to repay through divestitures.

So far, AIG has reached deals for a dozen businesses, raising more than $4 billion.

COSTLY QUARTER

AIG's quarterly loss included $1.2 billion of costs related to AIG's wind-down of a controversial financial products unit, almost $1 billion of interest and costs related to a credit line from the Federal Reserve, and investment losses or writedowns of $1.6 billion.