AIG has reported a first-quarter net loss of $US183 million ($245 million), slumping from a net income of $US2.47 billion ($3.3 billion) in the corresponding period last year.

CEO Peter Hancock attributes the poor result to “the negative impact of market volatility on investments”. 

He says operating income of $US773 million ($1.03 billion) for the quarter reflects a strong underlying performance and “demonstrates progress on our strategic objectives”/

“Expenses declined 5% year over year… as we continued to drive for efficiency and narrow our focus on the products, geographies and demographics that provide the greatest opportunities for profitability,” he said.

“Our goal is for AIG to become our client’s most valued insurer, and that means developing tailored insurance solutions that combine our risk expertise, insights from data science, the power of technology and best-in-class service from our talented employees.”

Mr Hancock says the strategy is to “streamline” the business, but he stresses this does not preclude it from exploring investment opportunities.

“We’re still making targeted investments in our future, including our recently announced plans to form a joint venture with Hamilton Insurance Group and [New York investment manager] Two Sigma to develop insurance solutions informed by data and technology for the SME market,” he said.

“By transforming AIG into a leaner, more profitable and focused insurer, we can leverage our risk expertise, scale and scope to provide value for our clients and generate returns for our shareholders.”