American International Group shares fell on Thursday, a day after the world's largest insurer reported that its third quarter profit dipped 13 percent on losses in consumer finance and exposure to the subprime mortgage market.

Shares of AIG fell $1.90, or 3.28 percent, to close at $56.00 on the New York Stock Exchange.

Losses before taxes were $864 million, less than one percent of its total cash and investments of $872.3 billion as of September 30.

Total write-downs were $3.39 billion, with $1.61 billion coming from mortgage-backed securities.

Third quarter profit was down 27 percent to $3.09 billion, or $1.19 per share from $4.22 billion, or $1.61 a year ago. Operating profit was $1.35 per share, missing analyst estimates of $1.62 per share.

Aig