As it works to stabilize its operations and repay billions in federal bailout funding, American International Group reported $1.5 billion in net income through its core insurance business for the first quarter of 2010.

American International Group reported a fourth-quarter loss of $8.9 billion, a large improvement over the $61.7 billion in loss it reported for the same period in 2008 when its implosion led to a federal bailout.