Results also included $1.11 billion in net realized losses, compared with a gain of $1.34 billion in the first three months of 2015. The insurer had $362 million of capital losses tied to bond sales, mostly in the energy industry, according to the company’s quarterly filing. The insurer had about $13.9 billion of energy holdings in it’s available-for-sale corporate debt portfolio as of March 31.

“While the energy investments are primarily investment grade and are actively managed, the category continues to experience volatility that could adversely affect credit quality and fair value,” according to the filing.

Most of the remaining realized capital losses were tied to foreign exchange contracts.

The insurer dropped 3% to $54.90 in extended trading at 4:53 p.m. in New York. AIG had slipped 8.7 percent this year through 4 p.m., compared with the 1.8% climb in the S&P 500 Index. Results were released after the close of regular trading.

Scaling back

AIG also intends to exit personal insurance in dozens of countries after announcing deals to scale back in Taiwan and sell operations in Panama, El Salvador and Guatemala, Hancock said in his annual letter in March. The CEO also announced a reinsurance agreement that month in which Swiss Re AG agreed to take on some of AIG’s risks tied to casualty policies.

The changes, along with job cuts, are designed to improve return on equity in the long run. Activist investor Carl Icahn has mocked Hancock for failing to generate a 10% ROE. AIG agreed in February to appoint hedge fund manager John Paulson and a representative of Icahn’s firm to the insurer’s board.

The normalized ROE, which excludes some one-time items, was 8.9% in the first quarter, compared with 7.8% a year earlier. Book value, a measure of assets minus liabilities, climbed to $78.28 a share from $75.10 at the end of last year, helped by stock repurchases.

Schimek, Hogan

Profit at the commercial insurance operations, run by Rob Schimek since his promotion in December, fell 39% to $889 million. Kevin Hogan’s consumer business slipped 17% to $788 million. Both divisions were hurt by deteriorating investment results.

At the largest segment under Schimek, property-casualty coverage, income slipped 38% to $720 million. Policy sales fell 15% to $4.31 billion on the Swiss Re deal. The combined ratio improved to 96.9, meaning the insurer had an underwriting profit of 3.1 cents on every premium dollar, after paying claims and expenses. That compares with a ratio of 97.1 a year earlier.

Hancock has planned some initiatives for growth, including a joint venture announced last week with Hamilton Insurance Group and hedge fund firm Two Sigma Investments to sell coverage to small- and mid-sized enterprises. The goal is to better use data analytics when underwriting insurance policies.