American International Group Inc. (AIG) reported profit above analysts’ estimates in the first quarter as lower-than-expected catastrophe losses contributed to strong underwriting results.

Adjusted earnings for the quarter were $1.2 billion, or $1.77 a share, up from $1.63 a share in the same period a year earlier, the New York-based company said in a statement Wednesday. The average estimate of analysts surveyed by Bloomberg was $1.67.

The general insurance unit reported an underwriting profit of $596 million, a 19% year-over-year increase. Catastrophe-related charges were $106 million, about half what analysts expected.

Underwriting profit increased 67 percent after accounting for the sale of two subsidiaries, the company said.

“General Insurance had another quarter of impressive commercial lines profitability benefiting from continued strong underwriting performance and low levels of catastrophe losses as we continue to manage volatility in our results,” Chief Executive Officer Peter Zaffino said in the statement.

The unit had a combined ratio of 89.8, meaning the business spent about 90 cents covering losses for every premium dollar brought in. Analysts expected a ratio of 91.3. Net premiums written for general insurance were $4.5 billion, shy of the $4.9 billion average estimate.

The life and retirement unit had adjusted pretax income of $991 million, up 12% from the year-ago quarter. Reducing AIG’s stake in the Corebridge life and retirement business, which the company is in the process of spinning off, “remains a top priority in 2024,” Zaffino said in the release.

The company bought back $1.7 billion of common shares in the quarter. The board of directors on Tuesday authorized a dividend of $0.40 per common share, an 11% increase from previous quarterly payments, according to the statement.

The company’s shares rose 2.4 percent to $77.65 at 4:22 p.m. in late New York trading. They were up 12 percent year-to-date as of the close of regular trading.