AIG Raises Estimates on Losses in Attack
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American International Group Inc. raised its estimate of losses from the destruction of the World Trade Center and said it would take a charge of $1.36 billion in the third quarter for the costs of its recent acquisition of American General Corp.
AIG, the world’s largest insurer by market value, expects $800 million in claims from the World Trade Center before taxes and net of reinsurance, Chairman Maurice Greenberg said. That’s up from the firm’s initial call of $500 million, made two days after the Sept. 11 attack.
Insurers and reinsurers worldwide have upped their loss estimates from the attack in the last few weeks and are now expected to pay $40 billion or more in overall claims related to it.
Greenberg also said that excluding the one-time charges and World Trade Center losses, AIG’s third-quarter earnings will be “pretty much on target.”
AIG rose 50 cents to $77.35 on the NYSE.
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