AIG falls after forecasting more than $1 billion in third-quarter catastrophe losses

Brian Duperreault
Rob Kim | Getty Images

Insurance giant AIG said it expects to report between $1.5 billion and $1.7 billion in pre-tax catastrophe losses for the third quarter.

The company said the losses were a result of numerous weather events like the typhoons in Japan as well as Hurricane Florence. AIG said its currently projecting between $900 million and $1 billion in losses related to events in Japan and Asia and between $600 million and $700 million for North America.

For the fourth quarter, AIG said its initial loss projections related to Hurricane Michael were between $300 million and $500 million.

AIG also said it has "exhausted approximately $700 million of the $750 million retention under its North America aggregate catastrophe reinsurance program following the California mudslides, Hurricane Florence and assuming the high end of the loss estimate range for Hurricane Michael."

AIG President and CEO Brian Duperreault said, "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."

Duperreault also said the company's "thoughts are with those who have been affected by the recent extreme events."

AIG is scheduled to release final third-quarter results on Nov. 1.

The stock fell as much as 5 percent in after-hours trade. Shares of the insurer have already fallen 23 percent in the past 12 months.