AIG estimates its Sandy-related losses at $1.3B
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American International Group Inc. said Friday that its preliminary estimate of AIG's aftertax losses related to Superstorm Sandy, net of reinsurance, will total approximately $1.3 billion.
AIG said the estimate reflects a pretax loss estimate, net of reinsurance, totaling approximately $2.0 billion.
“AIG expects to make a capital contribution to its U.S. property/casualty insurance subsidiaries of $1 billion from existing, readily available funds,” said the New York-based insurer in a statement. “In 2012, AIG Property Casualty has paid dividends to AIG Inc. totaling $2.4 billion. As of Sept. 30, 2012, AIG Property Casualty's equity totaled $49.6 billion, and AIG Inc.'s equity totaled $102.4 billion.”
AIG cautioned that the preliminary estimate “involves the exercise of considerable judgment. Due to the complexity of factors contributing to the losses, there can be no assurance that AIG's ultimate losses associated with this storm will not differ from this estimate, perhaps materially.”
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