AIG sees third-quarter catastrophe losses of about $3 billion
American International Group Inc
AIG`s shares were down about 1.7 percent at $60.75 in extended trading.
The company estimated pre-tax losses of about $1 billion each from Harvey and Irma, up to $700 million from Maria and additional catastrophe losses, including earthquakes in Mexico, of about $150 million.
Morgan Stanley analysts said the losses were slightly above their estimate of $2.5 billion, but were manageable as it equated to about 2.6 percent of book value.
The analysts, who have an "overweight" rating on the stock, also highlighted the company`s more than $3.5 billion in cash and short-term investments, saying it should help tackle capital concerns from losses in the third quarter.
Insurers and reinsurers are counting the costs of the hurricanes that tore into parts of the United States, while ravaging several islands in the northern Caribbean.
Germany`s Munich Re
Hurricane season in the Atlantic is still in full swing and Morgan Stanley said it expects overall insured losses from this year`s catastrophes to approach $100 billion.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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