NEW YORK (Reuters) - American International Group Inc is expected to post a first-quarter net loss of about $5 billion, smaller than its year-ago loss and much lower than the record hit it took last quarter, a source familiar with the matter said on Wednesday.

The insurer’s net loss is expected to be about $1.80 per share, the source said. AIG results are expected after the stock market close on Thursday.

In the first quarter of 2008, the insurer posted a net loss of $7.81 billion, or $3.09 a share.

On an adjusted basis, AIG is expected to post a first- quarter loss of about $2.4 billion, which comes to a little less than 90 cents per share, the source said.

The adjusted figure excludes capital and FAS 133 losses, the source added. FAS 133 relates to accounting for derivative instruments and hedging activities.

AIG could not immediately be reached for comment. The source did not want to be identified because AIG has not announced its results yet.

Earlier this week, the source said results would not trigger a new capital injection from the U.S. government, making it the first quarterly results announcement since AIG’s September rescue that would not be accompanied by the government stepping in to aid the insurer.

It would also be AIG’s sixth consecutive quarterly loss, with the last five already adding up to more than $100 billion.

AIG’s fourth-quarter net loss of $61.7 billion was the largest quarterly loss in U.S. corporate history and was announced in March along with a revised bailout package, which included a new $30 billion lifeline for the troubled insurer among other terms.

Overall, the government has committed some $180 billion in its efforts to rescue AIG, including some $85 billion in loans that the insurer is trying to repay through divestitures.

So far, AIG has reached deals for a dozen businesses, raising more than $4 billion.

AIG Chief Executive Edward Liddy told Reuters in late April that the company was also reviewing second-round bids for an asset management business and an aircraft lessor. Together, sales of those businesses are expected to bring in more than $5 billion.

AIG is also near a deal to sell its Japanese headquarters for about $1 billion, another source told Reuters earlier this week.

AIG’s shares were up 9 cents to $1.82 in early afternoon trading on the New York Stock Exchange.