AIG had agreed to sell Alico to MetLife, the largest US life insurer, for about $US15.5 billion ($16.92 billion) earlier this year as part of a major restructuring exercise aimed at repaying the taxpayer bailout. Excluding the writedown, AIG said it made a better-than-expected adjusted net income of $US1.34 billion ($1.46 billion) or $US1.99 per share, from $US1.14 billion ($1.24 billion) or $US1.17 per share a year earlier. Most analysts had expected a net income of 99 cents per share. AIG shares on Wall Street rose 1.30 per cent to $US40.42. Company president and chief executive Robert Benmosche said its "continuing insurance operating results remain solid" as the company forged ahead with its restructuring plans and prepared for separation from the US Government. AIG notched an operating income of $US2.2 billion ($2.4 billion) from its insurance operations in the second quarter. "Our overall strategy remains unchanged.