Brian Duperreault, AIG: "We are proud of our response as a member of the industry and as a corporate citizen during this time of need.”

Brian Duperreault, AIG: "We are proud of our response as a member of the industry and as a corporate citizen during this time of need.”

AIG declares heavy $3bn Q3 cat loss bill

10 October 2017

American International Group (AIG) warned yesterday evening (9 October) that the third quarter could amount to its largest ever catastrophe loss following the recent trio of deadly hurricanes Harvey, Irma and Maria, together with the Mexican earthquakes.

According to the insurance powerhouse, AIG's net loss bill from Harvey will be between $1.1bn and $1.2bn. By way of comparison in September 2005, AIG said its net losses from Hurricane Katrina would be $1.1bn.

Irma will cost between $1bn and $1.1bn and Maria  $600mn-$700mn, the New York headquartered company added. The Mexican earthquakes will cost up to $150mn, aggregating to between $2.9bn and $3.1bn.

These pre-tax losses are significantly higher than the $1.95bn that Chubb recently estimated for the same loss events.

AIG's relatively high net losses may also reflect the group's moves in recent years to rationalise its reinsurance spend, which led to significant premium being withdrawn from the global reinsurance market.

Earlier this month, the group announced the appointment of former Novae CFO Charlie Fry to head its outwards reinsurance, operations and transformation.

Brian Duperreault, AIG President and CEO, commented: "During this period of unprecedented catastrophes, our thoughts are with all who are affected by these storms".

He added: "We are proud of our response as a member of the industry and as a corporate citizen during this time of need.” re