NEW YORK (Bloomberg) — American International Group Inc., the insurer bailed out by the US, increased its borrowing under a Federal Reserve credit line by the most since October to repay debt from an expiring government commercial paper programme.

AIG owes $25.8 billion on the line, about $2.4 billion more than last week, according to Fed data released last week. The draw has increased for six straight weeks. The company said in November that it may borrow additional funds from its five-year Fed credit line to make payments on maturing commercial paper.

"This helps to highlight the risks we're exposed to as citizens standing behind AIG," said Bill Bergman, an analyst at Morningstar Inc. in Chicago. "While there's much more liquidity in markets as a whole, lenders are still being selective."

AIG received a US Government bailout worth $182 billion.