American International Group Inc posted a first-quarter profit as the bailed-out insurer got a boost from its investments, but core insurance operations were weak.

AIG, nearly 80%-owned by the US government, reported a profit to the company of $1.5 billion, or $2.16 per share, compared with a loss to the company of $4.4 billion, or $39.67 a share, a year earlier.

Profit at the company?s general insurance business, Chartis, increased 24% to $879 million as its investment performance improved. The profit came despite $481 million of catastrophe losses, including due to an earthquake in Chile.

But Chartis? net premiums written fell 1.1% to $7.6 billion. AIG said the decline was a significant improvement over the prior four quarters, but net premium writings continue to be affected by challenging economic conditions.

Profit at SunAmerica Financial Group, AIG?s US life insurance and retirement services business, also improved, largely due to increased net investment income. But premiums, deposits and other considerations fell 6.5% on a decline in individual fixed annuities and lower life insurance sales. AIG reported $16.3 billion in revenue for the quarter.

?I am pleased with their progress, but there is still more work to be done,? chief executive Robert Benmosche said in a statement.

BoI declares 70% dividend

Higher provisioning has pulled down net profit of Bank of India(BoI) by 47% to Rs 428 crore in the fourth quarter ending in March 31, 2010, from Rs 810 crore recorded in the corresponding period of the previous fiscal. The bank had to make a provisioning of Rs 848 crore during the fourth quarter as against Rs 597 in the year-ago period.

Bank of India has declared a dividend of 70% for the year 2009-10.The bank?s net NPA increased to 1.31% during the fourth quarter as against 0.44% during the corresponding period a year ago. The bank also had to make a provision of Rs 107 crore against mark-to-market (MTM) losses. The net interest margin of the bank stands at 2.51% at present. The bank is looking at raising Rs 2,500 crore by way of upper Tier II and perpetual bonds during the current fiscal.

Exim Bank net up 8%

Due to high tax provisioning, net profit of state-owned Export-Import Bank of India (Exim Bank) has increased 8% to Rs 513.5 crore for the year ending March 31, 2010, against Rs 477 crore in 2009-10.

The bank has provided for Rs 259 crore in form of tax during the year as against Rs 133 crore in 2009-10 However, profit before tax of the bank increased by 26% to Rs 772.4 crore during the year.

Announcing the annual financial results in Mumbai on Friday, TCA Ranganathan, chairman & managing director of the bank, said, ?We are looking at achieving an incremental loan growth of 20% for the current fiscal year too?. The bank?s loan assets grew by 14% to Rs 39,371 crore, including a sum of Rs 12,000 crore falling under refinance segment.