AIG falls more than 3% after forecasting more than $1 billion in catastrophe losses

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Insurance giant AIG said it expects to report between $1.5 billion and $1.7 billion in pre-tax catastrophe losses for the third quarter.

The company said the losses were a result of numerous weather events like the typhoons in Japan as well as Hurricane Florence. AIG said it was also updating its loss estimates related to mudslides in California.

AIG also said it has “exhausted approximately $700 million of the $750 million retention under its North America aggregate catastrophe reinsurance program following the California mudslides, Hurricane Florence and assuming the high end of the loss estimate range for Hurricane Michael.”

AIG President and CEO Brian Duperreault said, “We are pleased that our efforts to restructure our North American reinsurance portfolio are yielding the desired result to mitigate our exposure to catastrophe losses.”

Duperreault also said the company’s “thoughts are with those who have been affected by the recent extreme events.”

The stock fell 3 percent in after-hours trade.

AIG is scheduled to release final third-quarter results on Nov. 1.

This story is developing. Please check back for updates.

2018-10-18 20:31:00

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