AIG sees third-quarter cat losses of US$3bnOctober 11 2017 by InsuranceAsia News Staff
AIG said it was expecting to log pre-tax catastrophe losses of about US$3 billion in the third quarter of this year.
Company estimates pegged pre-tax losses of about US$1 billion each from hurricanes Harvey and Irma, and up to US$700 million from Maria, as well as additional catastrophe losses, including earthquakes in Mexico, of about US$150 million.
Analysts at Morgan Stanley said the losses were slightly higher than their estimate of US$2.5 billion, but were still manageable as it equated to about 2.6% of book value.
The analysts also emphasised the company’s more than US$3.5 billion in cash and short-term investments, saying it should help tackle capital concerns from losses in the third quarter.
Insurers as well as reinsurers have been assessing the costs of hurricanes that stormed through the US and ravaged Caribbean islands last month.
- June 20
The country's financial regulator may increase the quota for local insurers that invest in innovative domestic industries.
- June 15
Rising rates benefit dollar bond investors in the long run but signal growing policy divergence in Asia.
- May 16
It is determined to carry on with its proposal to raise its share in Hyundai Life Insurance to 62%.
- May 11
The two companies, Tongyang Life and ABL Life, could be sold in a package deal or separately.