Adjusted pre-tax income from AIG’s general insurance arm fell 52% to $US510 million ($678.32 million) in the first quarter following losses from the Papua New Guinea earthquake and other natural catastrophes.

Mudslides in California and US winter storms also contributed to overall catastrophe losses of $US376 million ($500.12 million) in the three months to March.

The insurance giant recorded a drop in overall net income to $US938 million ($1.25 billion) from $US1.19 billion ($1.58 billion) in the corresponding period last year.

Net investment income fell 9% to $US3.3 billion ($4.39 billion).

The general insurance arm recorded a 2% decline in net written premium to $US6.17 billion ($8.2 billion), while the combined operating ratio blew out to 103.8% from 99.8%.

In North America, the general insurance business posted a 61% drop in adjusted pre-tax income to $US320 million ($425.66 million). The combined operating ratio deteriorated by 10.2 percentage points to 112.2%.

The international business’ net written premium fell 4% to $US4.13 billion ($5.49 billion) and adjusted pre-tax income declined 18% to $US190 million ($252.74 million). The combined operating ratio worsened to 98% from 97.9%.