NEW YORK (
American International Group
expects its property casualty unit, Chartis, to report about $1 billion in catastrophe losses for the first quarter of this year.
The losses will include the tsunami and earthquake in Japan as wells as exposure to other catastrophes such as the floods in Australia and the earthquake in New Zealand, according to an AIG statement.
The preliminary estimate excludes losses from AIG's general insurance operations in Japan that participate in the Japanese Earthquake Reinsurance Company (JERC), which is the exclusive provider of earthquake coverage in Japan. The maximum pre-tax loss that AIG general insurance can incur from claims due to earthquake damage is $575 million, including claims filed with
Fuji Fire and Marine Insurance
"In accordance with Japanese statutory accounting rules, AIG's generalinsurance operations in Japan have previously established catastrophe reserves of approximately $500 million for potential claims associated with earthquake damage to personal dwellings and have deposited funds for a substantial portion of these reserves with the JERC," AIG said in a statement.
Other insurers such as
have put out similar estimates to AIG. Swiss Re said they expect earthquake and tsunami damage in Japan to cost of $1.2 billion.
--Written by Maria Woehr in New York.
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