American International Group (AIG) is set back by an estimated $750 million to $800 million in catastrophe losses so far during the 2018 fourth quarter (excluding December), as revealed by CEO Brian Duperreault.
Duperreault also indicated that Wildfires in California, net of reinsurance, will add between $150 million and $175 million to the insurance company's net pretax losses for the fourth quarter. He also mentioned AIG's Life and Retirement unit's earnings will decline for the second half of 2019, owing partly to investment in new business and "growth initiatives”.
However, AIG expects to generate an overall 8% adjusted return on equity going into 2019, in part due to a slight underwriting profit in its general insurance unit - according to Duperreault. Furthermore, the company hopes to achieve double-digit adjusted return on equity in three years' time.