Typhoons Jebi and Trami led Q3 cat losses of around $1.5-1.7bn

AIG expects to report pre-tax Q3 cat losses of around $1.5-1.7bn, largely driven by events in Asia.

Typhoons Jebi and Trami resulted in estimated pre-tax losses around $900m-$1bn.

A further $600-$700m in pre-tax losses was reported in North American events, including Hurricane Florence and California mudslides.

Brian Duperreault, AIG’s president and chief executive 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. 

“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.”

AIG estimated its pre-tax loss estimates for Hurricane Michael are around $300-$500m, which will be included in the Q4 operating results.

Cat loss estimates include expected losses for Validus Holdings and its affiliates. 

AIG estimates that it has exhausted approximately $700-$750m retention under its North America aggregate catastrophe reinsurance programme following the California mudslides, Hurricane Florence and assuming the high end of the loss estimate range for Hurricane Michael.

Duperreault said his thoughts were with those who had been affected by the recent extreme events.

He added: “Across AIG we are committed to supporting our customers, wherever they are around the world, by acting quickly to help them recover and rebuild.”