Bailed-out US insurance giant AIG announced Friday its first profit in almost two years with second-quarter earnings of 1.8 billion dollars. AIG was the largest single recipient of US bailouts with the government pumping more than 170 billion dollars into the firm to keep it afloat and taking a controlling stake in the group in the process. The company said its return to profits came as some 'businesses stabilized and the company's results reflected positive valuation changes. AIG also achieved several important milestones in its restructuring program.' Second-quarter net income of 1.8 billion dollars compares with a net loss of 5.4 billion dollars in the same period last year. In the first quarter of 2009, the bailed-out insurer lost 4.3 billion dollars. 'Our results reflect stabilization in certain of our businesses,' said AIG chairman and chief executive Edward Liddy. 'We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due in part to accounting charges related to ongoing restructuring activities,' said Liddy, who is retiring on August 10. AIG has named insurance industry veteran Robert Benmosche as president and chief executive. The results excluding special items amounted to a profit of 2.57 dollars per share, well above the 1.67 dollars expected by analysts. Revenues rose 48 percent from a year ago to 29.53 billion dollars, better than the figure of 26.15 billion expected on Wall Street. The company was on the verge of collapse late last year after backing trillions of dollars in risky financial products amid a home mortgage meltdown that triggered financial turmoil. Liddy was named last year to head AIG as it wound down key operations after the government rescue. The company has been selling off various units as it seeks to steady its financial operations that suffered heavy losses from insuring risky bets on the US real estate market. 'We continue to make significant progress in our efforts to restructure the organization, stabilize its capital structure, and maintain our liquidity position,' Liddy said. 'We remain focused on the overriding goal of putting AIG in the best possible position to meet our obligations to stakeholders, including US taxpayers, by protecting and enhancing the value of our businesses and positioning our key franchises for the future. The time frame and path for achieving this goal will continue to be highly dependent on market conditions.' 