American International Group reported slightly higher net incomein the third quarter compared to the prior year, and said itsproperty and casualty pre-tax operating income grew 33 percent to$1.0 billion due to improved underwriting results.

The company reported net income attributable to AIG of $2.2billion for the quarter ended September 30, 2013, compared to $1.9billion for the third quarter of 2012.

Analysts at Achilles Research said the results showed AIG wasmaking “another vital step” in shaking off the bailout image earnedduring the financial crisis. Analysts there called the results“impressive.”

AIG said commercial and personal lines net premiums written grew2 and 4 percent, respectively, in the third quarter 2013. Thesenumbers excluded the effects of foreign exchange, a change in thetiming of recognizing excess of loss ceded premiums and losssensitive premium adjustments, the company said.

The company said that its commercial insurance operationscontinue to focus on growing higher value lines of business andrate strengthening. Its consumer Insurance continues to grow acrossproduct lines, expanding direct marketing as part of itsmulti-channel distribution strategy, AIG said.

On the conference call with analysts this morning, AIG presidentand CEO Robert H. Benmosche said AIG is still working with aconsortium of Asian investors to divest a major stake in itsInternational Leasing Finance Corporation non-core business.Benmosche said AIG believes it can close the ILFC deal as it wasoriginal announced some months ago, but accounting rules will forcethe company this quarter to make some choices, including maybe thedecision to instead move forward with an IPO.

Benmosche called the third quarter performance “solid,” and saidit “underscores the strong fundamentals of our businesses, andbuilds upon the momentum that we generated in the first half ofthis year.”

He said insurance operations reported improved pre-tax operatingprofits this quarter from the third quarter of 2012, and, “wecontinue to remain optimistic about the future. “

The company also declared a quarterly dividend of 10 per commonshare which will be paid on December 19, 2013.

“The continuation of a regular dividend highlights AIG's immenseprogress since it was bailed out five years ago,” Achilles Researchanalysts said.