AIG’s catastrophe losses above US$1.5bn in Q3October 19 2018 by InsuranceAsia News Staff
AIG is expecting to report third quarter 2018 pre-tax catastrophe losses, net of reinsurance, of between US$1.5 billion to US$1.7 billion.
The losses, revealed in a market announcement, are largely associated with Typhoons Jebi and Trami in Japan, Hurricane Florence in the US and revisions to loss estimates for the California mudslides which occurred in January.
In Asia AIG expects pre-tax catastrophe losses, net of reinsurance, of between US$900 million to US$1 billion, with events in the US costing the firm between US$600 to US$700 million.
The insurer’s initial pre-tax loss estimates for this month’s Hurricane Michael which hit the Florida Panhandle and Georgia, net of reinsurance, are between US$300 to US$500 million; these losses will be included in the fourth quarter results.
Brian Duperreault, AIG’s president and chief executive, commented: “Our thoughts are with those who have been affected by the recent extreme events. Across AIG we are committed to supporting our customers, wherever they are around the world, by acting quickly to help them recover and rebuild.”
He added: “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. We continue to look for ways to further evolve our global protection measures while remaining diligently focused on executing against our plan to position AIG for long-term sustainable, profitable growth.”
Catastrophe loss estimates include expected losses for recent purchase Validus Holdings and its affiliates. AIG estimates that it has used between US$700 million of the US$750 million retention under its US aggregate catastrophe reinsurance program this year.
The insurer will release its full Q3 results on November 1.
- January 11
David Howden, Hyperion's CEO, is bullish on the group's prospects.
- December 12
The Australian insurer has revealed a restructuring plan for the next three years.
- November 29
Troubled New Zealand insurer is edging back towards profitability.
- November 15
New business profit increased by 15% to US$2.28bn during the first nine months of 2018.