American International Group (AIG) Inc (NYSE:AIG) headed lower on Tuesday after the insurer revealed that the recent flurry of natural disasters could cost it up to US$3.1bn.
The New York-based group estimates third quarter pre-tax catastrophe losses of between US$2.9bn and US$3.1bn. Those forecasts are net of reinsurance, but fall to US$1.9bn to US$2bn after tax.
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Hurricane Harvey will be the most costly of the recent disasters, with estimated losses of between US$1.1bn and US$1.2bn for the insurer.
The company also expects to take a hit of between US$1.1bn and US$1.2bn from the damage caused by Hurricane Irma, while other recent disasters, including the earthquake in Mexico, will cost it about US$150mln in additional catastrophe losses.
Third quarter results are due out on November 2.
Shares eased 2.1% to US$60.50 in pre-market trade yesterday. Shares on Wednesday nudged up 0.02% to US$61.78 each.