America's biggest insurer in terms of market capitalization, American International Group Inc (AIG), has reported a 6.5% increase in first quarter profit to $1.98bn.
The insurer lost $800m as a result of claims resulting from the terrorist attacks on the World Trade Center on September 11th. It acted quickly and raised premiums for business and auto insurance.
Chief Executive Officer, Maurice 'Hank' Greenberg said that 'our cashflow is very strong and our investment income will begin to pick up. The trend will inevitably be on the upside.'
Although analysts are generally upbeat about AIG, there remain concerns about who will eventually succeed Greenberg. He is 77 years old now and still refuses to release details of his plans for the succession.