American International Group (AIG) reported a $4.35 billion ($1.98 per share) loss for the first quarter that included a $1.9 billion charge for restructuring costs at AIG Financial Products Corp. (AIGFP).

Over the past five quarters, AIGFP has reduced its portfolio of CDOs (backed mostly by subprime MBS) by more than 40% to $1.5 trillion.

AIG also reported that American General Finance, which originates mortgages, lost $203 million in the first quarter, due to a $186 million increase in the provision for finance receivables. Meanwhile, AIG continues to own mortgage insurer United Guaranty Corp. (UGC) after the splitoff of its property/casualty business.

UGC, based in Greensboro, N.C., had $483 million in operating losses during the quarter. Overall, the first quarter results mark an improvement, compared to AIG's $7.8 billion ($3.09 per share) loss a year ago.

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