company, said second-quarter earnings rose 14 percent, led by gains at its life insurance and financial services division.

AIG said profit excluding gains on the sale of securities increased to $924.7 million, or $1.32 a diluted share, from $811.4 million, or $1.15, in the year-ago quarter.

The New York-based company said pre-tax profit in financial services such as aircraft leasing rose 26 percent to $218.8 million. AIG earned $455.4 million in life insurance, up 17.1 percent a year ago, while property and casualty insurance earnings climbed 12 percent to $657.9 million.

"All our principal businesses were solid contributors, even though some sectors were negatively impacted by currency and economic weakness overseas,'' said AIG Chairman Maurice R. Greenberg in a statement.

When the dollar strengthens against foreign currencies, it digs into the profit AIG makes in its overseas businesses. More than half of AIG's pre-tax profit is generated overseas.

The dollar averaged 135.72 yen in the second quarter, up 13 percent from an average 119.75 yen in the year-ago quarter.