NEW YORK (Bloomberg) — US property and casualty insurers, a group including American International Group Inc. and Allstate Corp., posted a record loss in the first three months of the year as investments slipped and claims exceeded premiums, an industry group said.

"Property-casualty insurers absorbed a pounding" in the first quarter, said Michael Murray, assistant vice president for financial analysis at Insurance Services Offices Inc., in a statement yesterday. The industry reported a $1.3 billion net loss, compared with an $8.5 billion profit in the year-earlier period, according to Jersey City, New Jersey-based ISO.

Losses have widened as the recession lowered the value of bonds backing policies and carriers reduced prices to maintain business from cash-strapped clients. New York-based AIG lost $4.4 billion in the first quarter and Allstate, of Northbrook, Illinois, reported a deficit of $274 million.