American International Group Inc. (NYSE:AIG) announced today that its
preliminary estimate of AIG's after-tax losses related to Storm Sandy,
net of reinsurance, will total approximately $1.3 billion.
This estimate reflects a pre-tax loss estimate, net of reinsurance, totaling approximately $2.0 billion.
AIG expects to make a capital contribution to its U.S. property casualty insurance subsidiaries of $1 billion from existing, readily available funds. In 2012, AIG Property Casualty has paid dividends to AIG Inc. totaling $2.4 billion. As of September 30, 2012, AIG Property Casualty's equity totaled $49.6 billion, and AIG Inc.'s equity totaled $102.4 billion.
This preliminary estimate involves the exercise of considerable judgment. Due to the complexity of factors contributing to the losses, there can be no assurance that AIG's ultimate losses associated with this storm will not differ from this estimate, perhaps materially.
Losses related to Storm Sandy will be reflected in AIG's fourth quarter 2012 results, and any subsequent changes will be recorded in the period in which they occur.
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