The results were an improvement from the $61.7 billion it lost in the year ago period, but they were worse than analysts expected. They also followed two straight profitable quarters.
Investors weren't happy with AIG's news, and bid its stock down nearly 13 percent in pre-opening trading.
New York-based American International Group Inc. said Friday it lost $65.51 per share in the last three months of 2009.
On average, analysts surveyed by Thomson Reuters forecast a quarterly loss of $3.94 per share.