AIG, the insurance and financial services group bailed out by the US Government following an over-aggressive investment strategy, is continuing to make new loans to the same high-risk consumers who defaulted on their mortgages and who were at the heart of the sub-prime crisis.

Analysts at CreditSights, the independent credit research firm, carried out a one-on-one interview with David Herzog, AIG's chief financial officer, who said that American General Finance, the insurer's sub-prime lending unit, is still writing new business, and exploiting an opportunity to grow while major competitors have bowed out.