American International Group (AIG) reported a 48% profit jump for the first quarter, with its core insurance businesses all performing well and Chartis returning to profit.

AIG’s net profit was $US3.097 billion ($3 billion). Chartis reported a $US1.4 billion ($1.36 billion) operating profit compared with a $US424 million ($412 million) loss in the first quarter last year.

Chartis benefitted from growth in higher value lines and improving pricing. First-quarter combined ratio was 102.1 compared with 118.6 for the corresponding period last year and was boosted almost 2 percentage points by catastrophe losses. The loss ratio was 68% compared with 89.7% in the corresponding period last year.

Chartis’ net written premiums fell 3.7% to $US8.8 billion ($8.5 billion). AIG attributed some of the decrease to initiatives to improve risk selection and restructuring loss-sensitive business.

The SunAmerica Financial Group increased operating profit by 12% to $US1.3 billion ($1.26 billion).

AIG CEO Robert Benmosche says the group continues to help the US Government “profit from its investment in AIG” by repaying the assistance package provided at the peak of the global financial crisis.