AIG posts profit of $US455 million

Bailed-out insurance giant AIG has announced a third-quarter profit of $US455 million ($A499.3 million), a huge turnaround from a $US24.4 billion ($A26.8 billion) loss in the same period last year.

The earnings from the group, the largest recipient of US government aid during the financial crisis, exceeded expectations.

Excluding special items, the profit was $US2.85 ($A3.13) a share, compared with a market forecast of $US1.98 ($A2.17) a share.

It was the second strait quarterly profit for American International Group after the prior quarter's earnings of $US1.8 billion ($A2 billion).

"Our results reflect continued stabilisation in performance and market trends," AIG president and chief executive Robert Benmosche said on Friday.

"AIG employees are working to preserve the strength of our insurance businesses in a challenging market by working closely with our distribution partners, with third quarter 2009 showing signs of stabilisation."

The US government pumped more than $US170 billion ($A186.5 billion) into AIG to keep it afloat and took a controlling stake in the group.