Insurance and financial services giant American International Group (NYSE:AIG) just posted another strong quarter of double-digit revenue and earnings growth. It also updated investors on its exposure to the shaky residential housing market, demonstrating that investors may still be able to play it safe by going with AIG.

Total second-quarter revenue advanced 16% as a major jump in net investment income helped boost single-digit growth in overall premium revenue. On an operating segment basis, AIG's general insurance trends remained respectable, and its life insurance and retirement segment grew deposits in the double digits. The financial services and asset management units, which collectively account for about 13% of revenue, posted mixed results.

Overall adjusted net income grew a respectable 11.3%, contributing to a strong return on equity of 19.8%. Again, AIG's core insurance operations posted decent operating income growth despite a slight increase in the combined ratio -- they ended the quarter at 87.12. A 44% jump in operating income in the asset management operations had the biggest benefit on the bottom line.

Management spent a good portion of this morning's earnings conference call on its exposure to the domestic residential mortgage market. The key takeaways were that AIG is holding steady regarding its investments in the space and is feeling no pressure to liquidate its holdings as it suggested current market turmoil is unrelated to the fundamentals of the residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDO) it holds in its insurance investment portfolios. For more details, check out the company's residential mortgage presentation.

AIG detailed that "holdings in the residential mortgage market" account for about 11.4% of its total invested assets. About 30% of these holdings are in the sub-prime RMBS space, with just more than 20% in the still-risky Alt-A space, but overall, management stated that its holdings are of "high quality and enjoy substantial protection through collateral subordination."

As with just about any insurance company, be it Allstate (NYSE:ALL), Allianz (NYSE:AZ), Hartford Financial (NYSE:HIG), or Travelers (NYSE:TRV), AIG is going to hold a fair amount of securities exposed to the domestic housing market. Thanks to today's earnings call, investors at least have a better handle on AIG's exposure to the space, which also includes the origination of mortgages and mortgage insurance.

Overall, thanks to AIG's product and geographic diversification, it can likely ride out any further domestic turmoil. Exposure to non-insurance products definitely helps, as does the fact that foreign revenue accounts for more than 40% of the total. And a company that ends the quarter with more than $1 trillion in total assets is clearly operating on a global scale.                 

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.