AIG first quarter earnings have been boosted by lower catastrophe losses and rate improvement, while the insurer says it has made progress on plans to split out its life and retirement division as a separate company.

Net profit increased to $US4.3 billion ($6.1 billion) compared with $US3.9 billion ($5.5 billion) for the year-earlier quarter, underpinned by the general insurance operations.

“General Insurance continues to generate top line growth while driving sustainable underwriting improvement and expense discipline in both the combined ratio and the adjusted accident year combined ratio,” Chairman and CEO Peter Zaffino said.

Gross written premium rose 7% in the quarter to $US11.5 billion ($16.2 billion), adjusted general insurance pre-tax income rose 43% to $US1.2 billion ($1.7 billion), and the combined operating ratio improved 5.9 percentage points to 92.9%.

Mr Zaffino says the company has taken key steps toward an initial public offering (IPO) for its life and retirement business, which will be renamed Corebridge Financial. The separation plan was initially flagged in 2020.

“We continue to target an IPO in the second quarter, subject to market conditions and required regulatory approvals,” he told an earnings call. “We also continue to expect that we will retain a greater than 50% interest in this business post IPO.”

The life and retirement business reported adjusted pre-tax income of $US724 million ($1.02 billion) in the quarter, down from $US941 million ($1.3 billion), reflecting lower net investment income.