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.