NU Online News Service, July 25, 12:21 p.m. – American International Group Inc., New York, is reporting $1.8 billion in net income for the second quarter on $25 billion in revenue, up from $1.3 billion in net income on $21 billion in revenue for the second quarter of 2001.

Adjusted income, which excludes $629 million in investment losses realized during the latest quarter and $654 million in acquisition and restructuring costs for the second quarter of 2001, increased to $2.2 billion, from $2 billion.

The company sells life insurance, health insurance, annuities, retirement services and related financial services products in the United States and in other countries, as well as property-casualty insurance and financing services.

The life operations are reporting $1.5 billion in operating income for the latest quarter on $16 billion in premiums, deposits and investment income, up from $1.3 billion in operating income on $15 billion in revenue for the comparable quarter in 2001.

U.S. life insurance operating revenue fell 13% during the quarter, to $1.1 billion, because of a drop in single-premium private-placement sales, but U.S. life insurance revenue from other types of products, and revenue and operating income from most other foreign and domestic life and health activities, were up, AIG says.

The retirement savings and asset management operations, which include VALIC and SunAmerica, are reporting $280 million in operating income on $871 million in revenue, down from $283 million in operating income on $937 million in revenue. But VALIC managed to increase its net variable annuity sales 7.1%, to $1.2 billion.