(by Geck Finn)

AIG said second-quarter profit rose 26 percent after it expanded its life insurance and annuities businesses in Asia.

Net income rose to $2.86 billion, or $1.09 a share, from $2.28 billion, or 87 cents, a year earlier. Profit excluding investment gains and losses was $1.14 a share, compared with the $1.12 average estimate of 21 analysts surveyed by Thomson Financial.