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Member, Beacon International Group, Ltd.
NEW YORK—American International Group Inc. said Wednesday that it expects recent losses at Japanese operations will have a minimal impact on its income and that earthquake-related claims at Fuji Fire & Marine Insurance Co. Ltd. will be $508 million at most.
AIG last week said its preliminary pretax loss estimate for its Chartis Inc. property/casualty unit was about $700 million related to the recent earthquake and tsunami in Japan. But that number excluded losses from AIG’s general insurance operations in Japan, such as Fuji Fire & Marine, which participates in the government-backed Japanese Earthquake Reinsurance Co. Ltd.
“AIG expects minimal net effects on the statutory capital and liquidity of its local Japanese operations, including those of Fuji Fire & Marine,” the New York-based insurer said in a statement.
AIG holds a 54.7% equity stake in Fuji Fire & Marine, which has not yet announced actual losses from the March 11 quake in Japan. The Osaka, Japan-based insurer previously established catastrophe reserves of about $482 million for potential claims associated with earthquake damage to personal dwellings, AIG said.
Total net losses that Fuji Fire & Marine incurs through its participation in JERC will flow through AIG’s income statement, the insurer said in the statement.
NEW YORK (Reuters)—American International Group Inc. said it would post an estimated $1 billion in pre-tax catastrophe losses in the first quarter, mostly from exposure to the March 11 earthquake in Japan.