Property and casualty results at American International Group deteriorated slightly in a competitive market, while overall the company reported a second-quarter net loss of $2.7 billion, primarily due to a $3.3 billion goodwill impairment charge on the sale of a life subsidiary.

Robert Benmosche, the New York-based insurer's chief executive officer, said in recorded comments on AIG's website that the impairment was taken to write off the goodwill that had been allocated to life unit ALICO, which is being sold to MetLife for $15.5 billion. Mr. Benmosche said he expects that deal to close later this year.

(AIG also announced last week that it will sell its majority interest in its consumer lending business, American General Finance, and take a pre-tax loss of $1.9 billion in the third quarter from the transaction. See accompanying story for more details.)