AIG Expects $1.3B in Losses Related to Hurricane

December 10, 2012

AIG estimates it will take $1.3 billion in losses related to Superstorm Sandy, more than other major insurance companies have reported so far.

New York-based American International Group Inc. said Friday it will contribute about $1 billion to its U.S. property casualty insurance units to help offset the losses, which are after taxes and include reinsurance recoveries. The company says AIG Property Casualty has paid $2.4 billion in dividends to AIG in 2012.

The losses will be included in the company’s fourth-quarter results.

On Wednesday, Travelers Cos. Inc. estimated $650 million in losses from the storm after taxes and reinsurance recoveries. Allstate Corp. estimated last week that it had $1.08 billion in catastrophe losses during October, mostly from damage to homes and autos from Sandy.

The federal government has distributed about $2 billion in aid to the 11 U.S. states that were hit by the storm, which made landfall on Oct. 29. On Wednesday, Federal Emergency Management Agency Director Craig Fugate told the House Transportation Committee that the government’s disaster relief fund had about $4.8 billion remaining, enough to fund recovery efforts through early Spring.

New York, New Jersey and Connecticut have appealed for more aid immediately, seeking another $83 billion.

AIG shares rose 87 cents, or 2.6 percent, to $34.13 Friday. They gave back 68 cents to $33.45 in aftermarket trading.

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