American International Group, Inc. (NYSE:AIG) announced today that its preliminary estimate of AIG’s after-tax losses related to Storm Sandy, net of reinsurance, will total approximately $1.3 billion.
This estimate reflects a pre-tax loss estimate, net of reinsurance, totaling approximately $2.0 billion.
AIG expects to make a capital contribution to its U.S. property casualty insurance subsidiaries of $1 billion from existing, readily available funds. In 2012, AIG Property Casualty has paid dividends to AIG Inc. totaling $2.4 billion. As of September 30, 2012, AIG Property Casualty’s equity totaled $49.6 billion, and AIG Inc.’s equity totaled $102.4 billion.
This preliminary estimate involves the exercise of considerable judgment. Due to the complexity of factors contributing to the losses, there can be no assurance that AIG’s ultimate losses associated with this storm will not differ from this estimate, perhaps materially.Losses related to Storm Sandy will be reflected in AIG’s fourth quarter 2012 results, and any subsequent changes will be recorded in the period in which they occur. This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts but instead represent only AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. Except for AIG’s ongoing obligation to disclose material information as required by federal securities laws, AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions, or other statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Factors that could cause these forward-looking statements to differ, possibly materially, from that currently contemplated include the factors set forth in AIG’s filings with the United States Securities and Exchange Commission.