According to Reuters, American International Group Inc. (NYSE: AIG) announced that it expects to book pre-tax losses of about $3 billion in the third quarter related to natural disasters, hurricanes Harvey, Maria and Irma.
American International Group expects pre-tax losses of $700 million from Hurricane Maria as well as $1 billion loss each from Hurricane Harvey and Irma. Earthquakes in Mexico also have affected the company in an estimated pre-tax loss of $150 million, AIG claimed in a statement. Insurers and reinsurers alike have been calculating the cost of the natural disasters that affected the U.S. as well as several islands within the northern Caribbean.
Morgan Stanley (NYSE: MS) expects insured losses from this year’s natural disasters to reach up to $100 billion. The world’s largest property and casualty insurer, Chubb Limited (NYSE: CB) estimated tax losses of $1.28 billion from Hurricane Harvey and Hurricane Irma.
"There is no modern historical precedent for a Miami hurricane, because the last direct hit was back in the 1920s. A direct hit from Irma could disrupt rail and container activity, and damage infrastructure for transportation, in addition to putting thousands of lives at risk," wrote Friedlander. "Combined with rainfall, then we are looking at catastrophic flooding to a vast area that already has problems with water levels. Real estate risks are simply gigantic," Roberto Friedlander, head of energy trading for Seaport Global Securities, said.