AIG racks up $730m loss amid ‘ongoing catastrophe’ of pandemic
Insurance giant American International Group (AIG) has piled up $730m (£558.7m) in coronavirus-related losses during the first half of 2020, its chief executive said today.
AIG chief executive Brian Duperreault warned of the “formidable and ongoing catastrophe” of the pandemic, as he ran through the insurer’s results in a call with analysts.
The firm, which is one of the biggest US insurers, yesterday posted a 56 per cent slump in quarterly adjusted earnings.
The group said the steep plunge was partly a result of $458m in Covid-related losses for its general insurance business.
AIG pointed to a slump in travel demand for poor performance in its travel insurance business, which in turn contributed to a $1bn slump in the firm’s net premiums year on year.
AIG shares sank more than seven per cent to $29.9 at market open today, down from yesterday’s market close of $32.1.
However, Duperreault attempted to reassure investors today by claiming the impact will affect AIG’s earnings and not its capital.
Peter Zaffino, AIG’s president and chief operating officer, added that pandemic-related losses affected a larger number of insurance lines in the last three months than during the first quarter.
Zaffino added that the insurance giant expects to recover some losses through reinsurance in the second half of 2020.
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