American International Group Inc. said it expects third-quarter pre-tax catastrophe losses, net of reinsurance, of between $1.5 billion and $1.7 billion.
The losses are largely related to typhoons in Japan as well as Hurricane Florence, which slammed North and South Carolina last month, the insurer said on Thursday. Revisions to estimates associated with mudslides in California also contributed to losses, AIG said.
The insurer said initial pre-tax loss estimates for Hurricane Michael were about $300 million to $500 million, which will be recorded in the fourth quarter. Hurricane Michael caused destruction in Florida and six other states this month.
AIG estimated it has exhausted about $700 million of the $750 million retention under its North American aggregate catastrophe reinsurance program.
The insurer reports third-quarter results on Nov. 1.
AIG's shares fell 3.3% to $47 in extended trading on Thursday.
American International Group Inc. is looking for acquisition opportunities and joint ventures in Brazil to grow its business in the region, Estadao reported. AIG is looking to cover small and medium-sized enterprises especially in the judicial guarantee segment due to lack of capacity and competition.