During the quarter, the company recorded $1.6 billion in costs related to multiple catastrophes across markets, including Hurricane Florence and the California mudslides in the US and natural disasters in Japan. The general insurance loss ratio of 88.6 – down 35.5 points year-on-year – included 22 points from the catastrophe losses alone.
AIG recorded $1.6 billion in costs related to catastrophes, including Hurricane Florence and the California mudslides in the US and natural disasters in Japan
During the quarter, total premium and deposits remained broadly unchanged at $6.8 billion. AIG’s book value per share plunged to $66.23 from $80.62 in the third quarter of 2017. In all the business segments, underwriting loss narrowed compared to last year.
“Life and Retirement achieved increased sales and solid double-digit returns, reflecting the strength of our product expertise and distribution networks. Looking ahead, we continue to work with a sense of urgency and are taking decisive actions across the company to position AIG for the future,” said CEO Brian Duperreault.
AIG is yet to recover from the massive value erosion it suffered more than a decade ago. The stock dropped about 30% over the past twelve months to hit a multi-year low this week. It closed Wednesday’s regular session higher but dropped during the extended session following the earnings report.