AIG has said its earnings fell 29% as revenues declined, realized losses on investments widened, and business in Asia trailed off.
Revenue for the quarter fell $1.7bn as business in Taiwan and Japan was hurt by increased competition.
AIG said the company's more profitable products in those markets were winding down, and that profit margins on new business were lower.
Chief Executive Martin Sullivan said his company was "taking appropriate action."
The company's property and casualty unit however showed a gain in operating income of 68.6% before capital gains and losses.
AIG said second-quarter net earnings fell to $3.19bn from $4.49bn.
