AIG Posts 27% Profit Drop on Higher Catastrophe Insurance Claims

AIG's earnings report after the bell Monday shows the insurance company battling lower earnings and revenue over its first quarter. Net income of $1.6 billion was down 27% from a year earlier. Dragging on profits, AIG property casualty insurance saw a 5% drop, while consumer insurance fell 7% on higher catastrophe and severe loss claims. In its mortgage division, new insurance written dropped 27% and net premiums slipped 6%. Total revenue slid 4% to $8.2 billion, missing analyst estimates.