NEW YORK - AMERICAN International Group Inc is expected to post a first-quarter net loss of about US$5 billion (S$7.5 billion), smaller than its year-ago loss and much lower than the record hit it took last quarter, a source familiar with the matter said on Wednesday.

The insurer's net loss is expected to be about US$1.80 per share, the source said. AIG results are expected after the stock market close on Thursday. In the first quarter of 2008, the insurer posted a net loss of US$7.81 billion, or US$3.09 a share.

On an adjusted basis, AIG is expected to post a first- quarter loss of about US$2.4 billion, which comes to a little less than 90 cents per share, the source said. The adjusted figure excludes capital and FAS 133 losses, the source added. FAS 133 relates to accounting for derivative instruments and hedging activities.

Earlier this week, the source said results would not trigger a new capital injection from the US government, making it the first quarterly results announcement since AIG's September rescue that would not be accompanied by the government stepping in to aid the insurer. It would also be AIG's sixth consecutive quarterly loss, with the last five already adding up to more than US$100 billion.

AIG's fourth-quarter net loss of US$61.7 billion was the largest quarterly loss in US corporate history and was announced in March along with a revised bailout package, which included a new US$30 billion lifeline for the troubled insurer among other terms.

Overall, the government has committed some US$180 billion in its efforts to rescue AIG, including some US$85 billion in loans that the insurer is trying to repay through divestitures. So far, AIG has reached deals for a dozen businesses, raising more than US$4 billion.

AIG Chief Executive Edward Liddy told Reuters in late April that the company was also reviewing second-round bids for an asset management business and an aircraft lessor. Together, sales of those businesses are expected to bring in more than US$5 billion.

AIG is also near a deal to sell its Japanese headquarters for about US$1 billion, another source told Reuters earlier this week. -- REUTERS