Catastrophes pushed the segment's combined ratio up 5.83 points, to 102.51.

Mr. Benmosche gave AIG employees credit for the improved financial performance. “The headline should be, 'Our people continue to make great progress,'” he said during a May 7 recorded address after earnings were released.

He said the company remains committed to paying the U.S. government back for loans extended to it in 2008 and keeping the company's remaining assets viable.

“All that said, 2010 will continue to be a transition year for all of us–one in which our total earnings could be somewhat volatile and where we could incur restructuring-related charges, including for good-will impairment as well as gains, including gains related to sales,” according to Mr. Benmosche.

Repayments to the government will affect future earnings, he added.

Mr. Benmosche said Chartis–AIG's rebranded property and casualty operation–is doing much better than it was in the recent past, when critics predicted the company would suffer “an enormous erosion of its business.” He said the reception of Chartis at the recent Risk and Insurance Management Society conference in Boston demonstrates that “AIG is back.”

“And I can guarantee you that we will work hard on our goal to become the preeminent global property insurer,” he said.

The acquisition of majority stock ownership in Fuji Fire and Marine Insurance Company, a Japanese carrier, indicates that the company is seeking to grow by making acquisitions while at the same time divesting what it needs to pay back government loans, according to Mr. Benmosche.

AIG remains on track to sell American Assurance Company Ltd. and American Life Insurance Company, and the deals should be completed by the end of the year, he said.

Speaking on May 12 to the company's shareholders in New York, Mr. Benmosche said first-quarter results show progress for the company. He added that the goal for AIG as it comes through the financial crisis that forced it to take billions in government funds to avoid bankruptcy will be to stabilize the organization and then run the company profitably.

Mr. Benmosche pointed to the ability of International Lease Finance Corp.–an airplane leasing unit owned by AIG–to raise $4 billion in debt and the strong performance of AIG operating companies as further signs of the company's return to health. “And you see our customers coming back,” he noted.

He said the company is also continuing to de-risk its Financial Products unit–which was at the heart of the company's near-collapse that led to government intervention in 2008.

Mr. Benmosche thanked the Federal Reserve and U.S. Treasury for being “partners as well as overseers.”

Asked by a shareholder if the company can continue to post profits, Mr. Benmosche said because AIG operates in a “world of complex accounting,” there may be some volatility in bottom line net income going forward, but he said the company's core businesses will continue on a trend of profitability.

Responding to a shareholder question about whether AIG may have been harmed in its prior dealings with Goldman Sachs on credit default swaps on collateralized debt obligations involving subprime mortgages, Mr. Benmosche said AIG's legal staff will look at all of its actions with Goldman, and if they find AIG was wronged, he said the company will take action.

AIG Chairman Harvey Golub said Goldman is a fine firm that does a lot of things well, and he said AIG will use them in instances where AIG feels it can benefit.

He said in instances where the company can get better service with other firms, it will go that route. “We deal with most banking firms,” he said.

His comments came after a stockholder asked about a May 6 New York Times report that AIG had replaced Goldman as its main corporate adviser.

In his May 7 statement, Mr. Benmosche also talked about AIG's efforts to repay the Federal Reserve Bank of New York for the aid the New York Fed provided during the financial crisis.

The sale of AIA and ALICO should reduce the loan obligations substantially, Mr. Benmosche said. AIG said its net New York Fed borrowing stands at $21.6 billion, plus interest and fees of $5.8 billion.