American International Group Inc, the insurer that received US$180 billion of federal bailouts, posted its first profit in seven quarters, sending its shares up 9 percent in premarket trade.

Second-quarter net earnings were US$1.8 billion, or $2.30 a share, compared with a net loss of US$5.4 billion, or US$41.13 a share, a year earlier.

After dividends on preferred stock held by the federal government, profit attributable to common shareholders was US$311 million.

On an adjusted basis, the company earned US$2.57 a share, far above analysts' average forecast of US$1.33, according to Reuters Estimates.

AIG shares were up US$2.13 at US$24.66 in premarket trading.

Once the world's largest insurer, AIG nearly collapsed last year because of its exposure to credit default swaps, which left it on the hook for tens of billions of dollars of payouts.

The latest results included US$5.7 billion in unrealized gains on investments and from the adoption of new accounting rules.

"Our results reflect stabilization in certain of our businesses," Chief Executive Ed Liddy said in a statement. But other operations, including its main insurance business, "remained challenged, largely driven by weak economic conditions and the lingering effect of the negative AIG events earlier in the year," he said.

The company's general insurance operations posted operating income, which excludes net realized capital gains, of US$1 billion, down from US$1.7 billion a year earlier.

Net written premiums fell 19 percent to US$7.9 billion.