AIG sees at least $1.3 billion Sandy loss, more than peers

Reuters News
Posted: Dec 07, 2012 4:17 PM
AIG sees at least $1.3 billion Sandy loss, more than peers

(Reuters) - Insurer American International Group Inc on Friday said it expects after-tax losses of at least $1.3 billion from Superstorm Sandy, a much bigger hit than some of its largest peers have reported.

The figure is double what Travelers Cos Inc said it expected to lose from Sandy and 20 percent more than Allstate Corp forecast for its losses.

AIG said the loss, which is net of reinsurance recoveries, would be reflected in the fourth quarter. The company will contribute $1 billion from existing funds to its U.S. property insurance subsidiaries to help cover the losses.

Sandy, which struck the Northeast region on October 29, is expected ultimately to be the second-costliest catastrophe in U.S. history, with insured loss estimates as high as $25 billion. The costliest catastrophe was Hurricane Katrina in 2005.

AIG shares fell 1.2 percent to $33.72 in after-hours trading.

(Reporting By Ben Berkowitz; editing by Carol Bishopric)