American International Group Inc. posted a narrower first-quarter loss after the US government rescue shielded the company against declines in assets tied to home loans.

The net loss of $4.35 billion, or $1.98 a share, contracted from $7.81 billion, or $3.09 a year earlier, New York-based AIG said yesterday in a statement distributed by Business Wire. The loss excluding some investment results was 97 cents a share.