AIG posts US$1.74bn loss

November 6 2017 by InsuranceAsia News Staff

AIG posted a US$1.74 billion third-quarter loss as it absorbed one of the markets single biggest hits from hurricanes, and also boosted unrelated claims reserves.

The results reflect the first full quarter under the leadership of Brian Duperreault.

The insurer said it had set aside US$836 million to meet losses related to prior-year accident claims.

Duperreault, who succeeded Peter Hancock in May, said the insurance industry witnessed catastrophic events in the third quarter of this year.

However, he said the group will continue to execute on its strategy to better position AIG for long term profitable growth.

In the third quarter ended 30 September, the insurer recorded pre-tax catastrophe losses of US$3 billion related to hurricanes Harvey, Irma and Maria, in line with previously disclosed estimates.

This caused AIG to swing to a net loss of US$1.74 billion in the quarter compared with a profit of US$462 million a year earlier.

Despite AIG’s quarterly loss, S&P Global Ratings said the insurer’s ratings have not been immediately affected.

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