Second quarter 2007 adjusted net income was a record $4.63 billion or $1.77 per diluted share, compared to $4.16 billion or $1.58 per diluted share in the second quarter of 2006.
Net income for the first six months of 2007 was $8.41 billion or $3.21 per diluted share, compared to $6.39 billion or $2.43 per diluted share in the first six months of 2006. Adjusted net income for the first six months of 2007 was $9.02 billion or $3.44 per diluted share, compared to $7.53 billion or $2.87 per diluted share in the first six months of 2006. Net income, as reported, includes the effect of economically effective hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses.
All told, AIG said its consolidated assets stood at $1.034 trillion as of June 30.
AIG President and Chief Executive Martin J. Sullivan took steps to defuse investor concern over its exposure to the troubled subprime mortgage lending market, saying that the company insurer continues "to be very comfortable with our exposure to the U.S. residential mortgage market, both in our operations and our investment activities."