American International Group (NYSE:AIG) estimates $750M-$800M in catastrophe losses so far in Q4, yet expects its general insurance unit to start 2019 "at a slight underwriting profit," AIG CEO Brian Duperreault said at a conference in New York.
AIG expects an overall 8% adjusted ROE at the beginning of next year, but targets double-digit adjusted ROE, a process that "could take up to three years," he said.
Sees the general insurance unit's 2019 net earned premium consistent with 2018 levels.
Sees reinsurance for California wildfires adding $150M-$175M to AIG's Q4 net pretax losses. Validus Holdings Ltd, the reinsurer AIG acquired in July, is expected to incur a pretax loss of about $60M for wildfires, Duperreault said.
Webcast of presentation.
Previously: AIG slips 2.1% after Evercore ISI downgrades on dimmer 2019 outlook (Nov. 7)
Subscribe for full text news in your inbox