Investors have punished AIG by wiping almost 10 percent off the firm’s share price this morning after the firm posted a $251mn Q1 underwriting loss including $376mn of catastrophe losses after markets closed yesterday.

The stock was trading down 9.5 percent at $49.63 towards the end of morning trading in New York after first quarter net income fell from $1.4bn last year to $963mn in the first three months of 2018.

The insurance giant reported $108mn of reserve releases - an improvement on the $24mn charge AIG took this time last year - failed to offset poor performance in the group’s insurance division, which fell to a loss.

The general insurance segment reported a combined ratio of 103.8 percent, a marked deterioration from the barely profitable 99.8 percent it reported for the first quarter of 2017.

AIG said that increased reinsurance spend had put pressure in the result, offsetting a “favorable change in the portfolio mix”.

Net written premiums dipped by 2 percent overall to $6.17bn as “strategic portfolio actions” in the group’s US property and casualty book delivered a 12 percent dent AIG’s domestic net premiums, which fell to $2.04bn.

That shakeup more than offset 4 percent premium growth in the group’s larger international book, which climbed to $4.13bn during the quarter.

The international division delivered a 98 percent combined ratio that was roughly flat compared to this time last year.