AIG expects up to $1.7 billion in losses from Florence, typhoons

AIG expects to report Q3 catastrophe losses of $1.5 billion to $1.7 billion from natural disasters.

Hurricane Florence and typhoons in Asia are estimated to have caused billions of insured losses during Q3. (AP Photo)

American International Group Inc. expects to report third-quarter catastrophe losses of $1.5 billion to $1.7 billion from natural disasters including Hurricane Florence and typhoons Jebi and Trami.

The shares fell in extended trading.

Losses tied to Hurricane Michael will be in Q4 results

Additionally, initial estimates for losses tied to Hurricane Michael are about $300 million to $500 million, which are set to be included in fourth-quarter results, the New York-based company said Thursday in a statement. Those forecasts are calculated before taxes and net of reinsurance. AIG’s third-quarter earnings call is scheduled for Nov. 1.

Florence and typhoons in Asia are estimated to have caused billions of insured losses during the third quarter.

Travelers: $264 million in catastrophe costs in Q3

Travelers Cos., which reported third-quarter results Thursday, said that catastrophe costs were $264 million in the quarter and that it expects to continue its share repurchase program despite the impact of Michael, which slammed the U.S. in October.

AIG shares traded at $46.50 at 4:37 p.m. in extended trading in New York, down 4.3% after closing at $48.61.

Related: Italian bridge tragedy add to ‘large’ claims at Swiss Re