For the third quarter, American International Group will be incurring about $1.5 billion to $1.7 billion of pre-tax catastrophe losses. The losses are related to multiple events in Japan, including Typhoons Jebi and Trami, as well as Hurricane Florence and revisions to loss estimates on the California mudslides.
Related: AIG Q2 Earnings Call Transcript
Additionally, for the fourth quarter, the company will incur initial pre-tax loss estimates for Hurricane Michael of about $300 million to $500 million. American International has exhausted about $700 million of the $750 million retentions under its North American aggregate catastrophe reinsurance program.
This year, the company has revamped its reinsurance program and enhanced its reinsurance protection. As it has exhausted the North American retention, experts believe the company could shine more in the overseas market. However, the wider losses in Japan and Asia showed that more could be done in its international business.
Shares of American International ended Monday’s regular session down 2.49% at $39.90 on the NYSE. The stock has fallen over 33% in the year so far and over 38% in the past year.