Amazingly how reactive this market is, like big hurricane losses are some big surprise? This stock should have been hammered three weeks ago, if fund managers were on the job. The downside of investing other people's money I suppose.
Associated Press
AIG Sees 2004 Storm Losses Up to $515M
Thursday October 14, 11:42 am ET
American International Group Sees 2004 After-Tax Storm Losses of Up to $515 Million
NEW YORK (AP) -- Insurance company American International Group Inc. estimates its after-tax losses due to hurricanes and typhoons in 2004 will be $500 million to $515 million.
The losses reflect the impact of hurricanes Charley, Frances, Ivan and Jeanne and three typhoons in Japan.
The New York-based company said Thursday the estimate includes its own domestic brokerage and personal lines businesses, as well as its foreign general operations.
The estimate also includes the company's prorated share of losses stemming from investments in Transatlantic Holdings Inc., Lloyd's Syndicate 1414, Allied World Assurance Holdings Ltd., IPC Holdings Ltd., and Fuji Fire & Marine Insurance Co. Ltd.
AIG is scheduled to report its third-quarter results on Oct. 21.
Analysts surveyed by Thomson First Call forecast, on average, a third-quarter profit of $1.08 a share for AIG. That's down from a consensus estimate of $1.14 a share in August.
In 2003, AIG reported third-quarter net income of $2.34 billion, or 89 cents a share. Excluding capital losses, operating earnings for the prior quarter were 98 cents a share.
Rival insurer Allstate Corp. said Wednesday the four hurricanes wiped out $1.1 billion, or $1.59 a share, of its after-tax, third-quarter earnings.
Shares of AIG were at $64.97, down $2.02, or 3 percent, Thursday morning on the New York Stock Exchange. |
