(Bloomberg) -- A consumer finance unit of American International Group Inc. will increase past earnings by $41.4 million to correct accounting on four derivatives transactions designed to hedge against changes in currency exchange rates.

The restatement at American General Finance Inc. will increase its net income for the first three quarters of 2005 by 12 percent to $394 million, the company said in a regulatory filing. The restatement "has no impact" on net income or other financials at AIG, the world's largest insurer, said spokesman Chris Winans.

American General, based in Evansville, Indiana, said it determined a restatement was necessary on March 20. The transactions, entered into since June 2004, don't qualify for hedge accounting, the filing said.

New York-based AIG has announced two restatements in the past year to fix accounting on derivatives, reinsurance and other transactions. The corrections lowered net income since 2000 by $3.4 billion.

American General "did not maintain effective controls over the accounting for derivatives," the filing said. The deficiency "constitutes a material weakness" that the company plans to resolve this quarter.

American General provides consumer loans and credit insurance. It had 1,444 branch offices in 45 US states, Puerto Rico and the US Virgin Islands on December 31, 2004, according to the company's most recent annual filing.