AIG CEO Zaffino: Insurers Are Looking at a $60B Hit from Hurricane Ian

Hurricane Ian could cost insurers up to $60 billion, according to AIG CEO Peter Zaffino.

Source: Reuters | Published on November 3, 2022

Florida damage

Hurricane Ian could cost insurers up to $60 billion, according to American International Group Inc CEO Peter Zaffino, making it the second-largest natural disaster loss in US history.

One of the world’s largest commercial insurers’ forecast is consistent with existing projections. Verisk, a risk modeling firm, predicted insurance losses ranging from $42 billion to $57 billion last month. more info

Hurricane Katrina, with $85 billion in insurance losses on an inflation-adjusted basis, is the largest natural disaster loss in U.S. history, according to Zaffino.

AIG estimated the lower end of Hurricane Ian’s expected losses at $50 billion.

After striking the United States’ mainland in September, Ian wreaked havoc on Florida and the Carolinas, killing over 100 people.

Zaffino’s remarks on a conference call come after the U.S. insurer reported a 39% drop in third-quarter profit due to Ian-related claims and lower investment returns on Tuesday. more info

Hurricane Ian was responsible for approximately $450 million of its total $600 million in catastrophe losses, according to AIG.