AIG realises its first net profit since 2007.

American International Group (AIG) has announced its first quarterly profit since 2007 and outgoing Chairman Edward Liddy believes the company has started to stabilise in some of its core areas.

The insurer revealed a net income of $1.82 billion (£1.09bn), compared to a loss of $5.36bn in 2008.

In an effort to raise more funds and secure its future, AIG is continuing its process of asset disposal. In the first six months of 2009, it has already completed asset sales that will look to generate around $4.6bn. The funds will be used to repay the Federal Reserve Bank of New York (FRBNY), which provided a rescue package for the insurer when it ran into trouble early on in the credit crunch.

AIG Chairman and CEO, Edward Liddy, commented: “While our insurance companies’ operating results remain challenged, largely driven by weak economic conditions and the lingering effect of negative AIG events earlier in the year, performance trends stabilised from the first quarter.”

Mr Liddy will retire from his role in the business this month – following his temporary appointment – and AIG has announced that Robert Benmosche will succeed him. Mr Benmosche is a former Chairman, President and CEO of MetLife, a leading provider of insurance and other financial services products.

“AIG and American taxpayers are fortunate to gain the commitment of Bob Benmosche, a highly experienced executive who understands the challenges and opportunities of restructuring complex organisations.”

Mr Liddy continued: “Our stakeholders can look forward to a seamless transition and rest assured that the work of rebuilding the value of AIG’s businesses and repaying the government will continue uninterrupted.”

The troubled US insurer announced it was pulling its shirt sponsorship of Premier League team Manchester United earlier this year, and has been replaced by risk management corporation Aon Consulting, from the start of the 2010/11 season.