AIG expects financial market disruption to colour rest of year

The group is in the process of increasing its liquidity position and investing in shorter duration investments

American International Group (AIG), which reported an overall net loss for the second quarter of 2008 of $5.36bn compared with a 2007 second-quarter net profit of $4.28bn, says that the disruption in the US residential mortgage and credit markets continues to have a significant adverse effect on its life insurance and retirement services operating results.