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AIG says it could see $3 billion in losses from hurricanes

Key Points
  • Harvey was the most expensive recent disaster for AIG, which estimates losses of $1.1 billion to $1.2 billion.
  • Losses from Maria estimated around $600 million to $700 million.
  • The estimates are net of reinsurance.
AIG sees almost $3.1 billion in Q3 pretax catastrophe losses

American International Group said Monday it estimates third quarter pre-tax catastrophe losses of $2.9 billion to $3.1 billion.

Shares of the insurance giant fell about half a percent in after-hours trading.

The loss estimates are net of reinsurance and fall to $1.9 billion to $2.0 billion after tax.

Hurricane Harvey was the most costly of the recent disasters, with estimated losses of $1.1 billion to $1.2 billion for AIG. The company also estimated losses of $1.0 billion to $1.1 billion from Hurricane Irma, and $600 million to $700 million from Hurricane Maria. AIG also estimated about $150 million in additional catastrophe losses including Mexico's earthquakes.

"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," Brian Duperreault, president and CEO, said in a statement.

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