AIG Estimates $1.1 Billion in Losses From Katrina
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NEW YORK — American International Group, one of the world’s largest insurers, said Tuesday that it expected $1.1 billion in after-tax losses for the third quarter, mainly because of claims from Hurricane Katrina.
The estimate from the New York-based firm is among the highest released so far by global insurance and reinsurance firms.
Risk assessment firms have estimated that Katrina -- which hit Louisiana, Alabama and Mississippi on Aug. 29 -- could result in insurance claims of $40 billion to $60 billion.
AIG’s president and chief executive, Martin J. Sullivan, said the company had the capital to absorb the losses.
The company said that “due to the unprecedented nature of this event, including legal and regulatory uncertainty,” its eventual losses could be higher than the current estimates.
AIG shares rose 16 cents to $60.51 before the announcement.
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