This comes as AIG launched the largest ever Lloyd’s syndicate, Syndicate 2019, which was set up to reinsure risks from AIG’s Private Client Group. The group has a leading market position in the high net work segment.

Peter Zaffino, President of AIG, explained: “For AIG, this transaction represents a continuation of our strategy to optimise our general insurance portfolio, create additional products for clients, diversify our capital base, and improve the quality of our earnings to drive value for all our stakeholders.”

Despite the underwriting loss, due to a higher net investment income of $588 million, the firm can report a pre-tax income of $501 million in Q1.

AIG said excluding the Covid-19 hit, its General Insurance unit would have recorded an underwriting profit in this period.

Overall, AIG’s General Insurance segment has reported a combined ratio of 101.5 per cent, including 6.9 per cent of catastrophes, of which 4.5 per cent relates to Covid-19.

Brian Duperreault, CEO of AIG, commented on the results: “In the face of Covid-19, our colleagues have shown great resilience and remain focused on what we do best, which is helping our clients manage risk, especially in difficult times.

“AIG was in a strong financial position before this crisis began and remains in a strong financial position today. While the new normal Covid-19 will create for each of us is still unknown, I am confident that AIG will continue to move forward on its journey to become a top performing company and leading insurance franchise.”