AIG Preannounces Global Catastrophe Losses
October 18 2018 - 4:18PM
Business Wire
American International Group, Inc. (NYSE:AIG) today announced it
expects to report third quarter 2018 pre-tax catastrophe losses,
net of reinsurance, of approximately $1.5 to $1.7 billion. These
losses are largely associated with multiple events in Japan,
including Typhoons Jebi and Trami, as well as Hurricane Florence
and revisions to our loss estimates on the California mudslides. As
a result, AIG expects pre-tax catastrophe losses, net of
reinsurance, resulting from multiple events in Japan and Asia to be
approximately $900 million to $1 billion and pre-tax catastrophe
losses, net of reinsurance, resulting from events in North America
to be approximately $600 to $700 million, respectively. In
addition, initial pre-tax loss estimates for Hurricane Michael, net
of reinsurance, are approximately $300 to $500 million, which will
be included in fourth quarter 2018 operating results. Catastrophe
loss estimates include expected losses for Validus Holdings, Ltd.
and its affiliates. AIG estimates that 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. For further
details on the North American catastrophe reinsurance program, see
Item 7. MD&A — Enterprise Risk Management — Insurance Risks in
AIG’s Annual Report on Form 10-K for the year ended December 31,
2017.
Brian Duperreault, President and Chief Executive Officer said,
“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. 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.”
These preliminary estimates involve the exercise of considerable
judgment. Due to the complexity of factors contributing to the
losses, there can be no assurance that AIG’s ultimate losses
associated with these events will not differ from these estimates,
perhaps materially.
AIG will host a conference call on Thursday, November 1, 2018,
at 8:00 a.m. ET to review its third-quarter financial results. The
call is open to the public and can be accessed via a live,
listen-only webcast available in the Investor Relations section of
https://www.aig.com. A replay will be available after the call at
the same location.
Certain statements in this press release constitute
forward-looking statements. These statements are not historical
facts but instead represent only AIG’s belief regarding future
events, many of which, by their nature, are inherently uncertain
and outside AIG’s control. It is possible that actual results will
differ, possibly materially, from the anticipated results
contemplated by these statements. Factors that could cause actual
results to differ, possibly materially, from those in the
forward-looking statements are discussed throughout AIG’s periodic
filings with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934.
American International Group, Inc. (AIG) is a leading global
insurance organization. Founded in 1919, today AIG member companies
provide a wide range of property casualty insurance, life
insurance, retirement products, and other financial services to
customers in more than 80 countries and jurisdictions. These
diverse offerings include products and services that help
businesses and individuals protect their assets, manage risks and
provide for retirement security. AIG common stock is listed on the
New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
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version on businesswire.com: https://www.businesswire.com/news/home/20181018005931/en/
American International Group, Inc.InvestorsLiz Werner,
212-770-7074elizabeth.werner@aig.comorFernando Melon,
212-770-4630fernando.melon@aig.comorMediaDaniel O’Donnell,
212-770-3141daniel.odonnell@aig.comorClaire Talcott,
212-458-6343claire.talcott@aig.com
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