AIG reports $1.5 billion first-quarter profit

AIG, which is still nearly 80 percent government-owned, reported first-quarter earnings of $1.5 billion compared with a loss of $4.4 billion in thecorresponding period last year. The latest results are a far cry from last March when AIG reported the worst annual earnings of any U.S. company in history.

The company remains on the hook for $182 billion of assistance from the Federal Reserve and Treasury. And AIG continues to borrow from the government: Last month, it increased its credit line with the Federal Reserve Bank of New York by $1.5 billion.

Under the Troubled Assets Relief Program, the Treasury offered $70 billion to AIG. As of the Treasury's April report on TARP, AIG -- unlike the banks or the auto industry -- had not repaid any of that money. In January, the Congressional Budget Office estimated that the total cost to the Treasury of rescuing AIG will be $9 billion.