(Bloomberg) – AmericanInternational Group Inc. shares dropped to the lowest level inalmost two years after first-quarter profit declined and fell shortof analysts' estimates.

Related: AIG's Brian Duperreault offers perspective on Q4losses

Insurance results were hurt by catastrophe costs and a declinein net premiums written, the company said Wednesday. AIG has saidit's making progress in its turnaround, but investors aren't seeingthe results they want yet.

Chief Executive Officer Brian Duperreault, who's been in chargeabout a year, has reorganized the company, replacing seniorexecutives and announcing a $5.56 billion deal to buy Bermuda-based reinsurerValidus Holdings Ltd. to expand abroad and enter newbusinesses.

Underwriting profit expected by end of year

AIG expects to report an underwriting profit by the end of thisyear, Duperreault said in a conference call Thursday.

“We need to get to an underwriting profit in this place andwe're going to do it,” he said.

The combined ratio for general insurance was 103.8, meaning AIGlost 3.8 cents for every premium dollar after claims and expenses.Duperreault said getting the combined ratio under 100 would producea good return on equity.

AIG fell 8.5%to $50.17 at 9:48 a.m. in New York. The sharesdeclined 8% this year through Wednesday.

Earnings highlights:

• Net income fell to $938 million, or $1.01 a share, from $1.19billion, or $1.18, a year earlier.
• Adjusted after-tax income per share was$1.04, missing the $1.25 average estimate of 14 analysts surveyedby Bloomberg.
• Book value was $69.95 at March 31, downfrom $72.49 as of Dec. 31.
• The underwriting loss was $251million.

Related: AIG earnings miss projections after fallout frommajor weather events

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