AIG Could See $3 Billion 3rd Quarter Loss from Hurricane Damages

08:10 10/09/2017

Insurance company AIG  is expected to announce a pre-tax loss of about $3 billion in the third quarter mainly related to the damages hurricanes Harvey, Irma and Maria caused. Share prices were down just 1.7% in after-market trading but expects that to tank even more tomorrow.

The natural disasters beat up the entire insurance industry in the month of September. Hurricane Harvey is estimated to have caused $1.2 billion in damages and claims for AIG. Hurricane Irma was set at about $1.1 billion loss along with Hurricane Maria causing $700 million in damages. AIG also said the earthquakes in Mexico caused about $150 million as well.

Brian Duperreault, President and CEO of AIG said, “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.”

In comparison to other companies affected by the storms, Chubb Ltd (the world’s largest listed property and casualty insurer) expects to record a $1.28 billion loss for the third quarter.

Germany’s Munich Re informed it could fail to meet its revenue objective this year, the first major reinsurer to document a loss in earnings from damage caused by the storms.

Morgan Stanley experts estimates the overall insured losses from catastrophic events for the year of 2017 to reach $100 billion.

We are now in October and these insurance companies are wondering, “I thought Hurricane season was over?!”

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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