AIG predicts US$3 billion in losses from catastrophes

Hurricanes Harvey and Irma account for the majority of the losses

American International Group (AIG) expects to record insurance losses of roughly US$3 billion during the third quarter from the recent hurricanes and earthquakes.

AIG said Monday that it expects to record pre-tax catastrophe losses between US$2.9 billion and US$3.1 billion during the quarter because of damage it will have to cover from Hurricane Harvey, Hurricane Irma and the earthquakes that struck Mexico.

Related: Brokers must educate clients on the risk of flooding: NICC 2017

AIG CEO Brian Dupereault says the company has acted quickly to provide money for claims.

The company estimates Hurricane Harvey caused between US$1.1 billion and US$1.2 billion in insurance losses and Hurricane Irma more than US$1 billion. Hurricane Maria will cost the company between US$600 million and US$700 million. The Mexico earthquakes were included in an additional US$150 million in additional catastrophe losses it faced in the quarter.

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Transcontinental Media G.P.