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First-quarter profits a mixed bag

American International Group (AIG) and reinsurance giant Swiss Re reported increased profits for the first quarter, but New York-based Marsh & McLennan (MMC) suffered a damaging fall of 36%.

MMC posted net earnings of $US268 million ($322 million), compared with $US416 million ($499 million) for the same quarter last year.

The diversified group says income from continuing operations was $US228 million ($273 million) and revenue increased to $US2.81 billion ($3.37 billion).

President and CEO Michael Cherkasky says MMC met its overall corporate performance expectations while continuing to position itself for future success.

AIG recorded an increase in earnings of 29% for the first quarter. The general insurance arm had a 31.5% increase in operating income to $US2.98 billion ($3.58 billion) before capital gains and losses.

The giant insurer’s net income for the first quarter was $US4.13 billion ($4.96 billion), compared with $US3.2 billion ($3.84 billion) in the first quarter of last year.

President and CEO Martin Sullivan says AIG had a very good quarter, with a strong performance in its global general insurance businesses.

“In general insurance, the domestic brokerage group and foreign general reported strong growth in operating income on excellent underwriting results and increased net investment income.”

Swiss Re exceeded expectations by posting a first-quarter net profit of 1.3 billion Swiss francs ($1.28 billion), up 54% on last year’s 863 million Swiss francs ($849 million) for the corresponding period.