This is how Hurricanes Irma, Maria, and Harvey Will Affect AIG in Q3

It was a dismal day for shares of American International Group (AIG) on Monday.

Shares dropped nearly 2% in extended trading after it was revealed that the company is expecting to book a pre-tax loss of around $3 billion in Q3.

Hurricanes Harvey, Irma, and Maria are to blame for the loss as the company expects pre-tax losses of round $1 billion each from both Harvey and Irma, and a loss of up to $700 million from Hurricane Maria. The company also expects losses of $150 million from the earthquakes that happened in Mexico.

According to analysts at Morgan Stanley, hurricane season this year is expected to produce overall insured losses of near $100 billion.

Morgan Stanley had expected AIG to have losses at around $2.5 billion.

Disclaimer: We have no position in American International Group Inc. (NYSE: AIG) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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