US insurer AIG sees up to US$2b losses from Q3 disasters

US insurer AIG sees up to US$2b losses from Q3 disasters

NEW YORK: American International Group expects a US$2 billion hit in the third quarter from a trio of major hurricanes in the Americas and a catastrophic Mexican earthquake, the insurer said on Monday (Oct 9).

AIG estimated pre-tax losses of between US$2.9 billion and US$3.1 billion, with the breakdown of above US$1 billion each for Hurricanes Harvey and Irma, US$600-US$700 million from Hurricane Maria and US$150 million from other events, including the Mexican earthquake.

Those are the expected losses to AIG following reinsurance claims. AIG estimated the impact after taxes at US$1.9 to US$2.0 billion.

The estimate includes the toll of biblical-scale flooding in Houston in Hurricane Harvey, repeat battering of the Caribbean with Irma and Maria and the Mexico calamity that claimed more than 360 lives.

AIG chief executive Brian Duperreault said the array of catastrophes marked an "unprecedented" period of disaster.

"Through AIG's financial strength and long experience with natural catastrophes, our teams across the company have reacted quickly to provide our clients with the claim funds, resources and expertise they need to recover and rebuild with greater resilience," he said.

AIG said the figures were preliminary and that the final number could be significantly different.

Shares of AIG fell 1.2 per cent to afterhours trading to US$61.05.

Source: AFP/de