AIG’s net profit grew 53% to $US2.47 billion ($3.11 billion) in the first quarter, improving on last year’s catastrophe-affected result.

The commercial insurance division’s property and casualty business lifted pre-tax profit 5% to $US1.17 billion ($1.47 billion) and its catastrophe losses more than halved to $US71 million ($89.35 million).

The combined operating ratio improved to 97.1% from 98.9%.

The commercial division’s result offset a 19% fall in the consumer insurance business, including life insurance, which reported pre-tax profit of $US945 million ($1.19 billion).

AIG group’s premium income fell 3% to $US8.82 billion ($11.1 billion) and it made a $US1.34 billion ($1.68 billion) capital gain.

CEO Peter Hancock says diversification and reducing debt have enabled AIG to lower its risk level.

“Our focus on value and long-term sustainability benefits our clients and our shareholders, and leverages our global scale to achieve the right balance between growth, profitability and risk.”

AIG bought back $US2.2 billion ($2.77 billion) of its shares in the first four months of this year, and the board last week authorised repurchase of up to another $US3.5 billion ($4.4 billion).