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AIG outlines WTC loss
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October 9, 2001: 5:46 p.m. ET
The world's largest insurance company raises its expected Sept. 11 claims tally.
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NEW YORK (CNNmoney) - American International Group Inc. (AIG), the world's largest insurer, on Tuesday raised its estimate of losses from the destruction of the World Trade Center.
The New York-based company also said it would take a large charge for the costs of its recent acquisition of rival insurer American General Corp.
AIG (AIG: Research, Estimates) said it now expects $800 million in claims from the World Trade Center, before taxes and net of reinsurance.
This estimate is up from the firm's initial call of $500 million in losses, made two days after the Sept. 11 attack. Insurance companies worldwide have raised their loss estimates from the attack in the past few weeks, and are now expected to pay $40 billion or more in overall claims related to the attack.
AIG Chairman Maurice Greenberg also said AIG would take $1.36 billion in charges related to its recent acquisition of rival insurer American General Corp., in its third-quarter results, expected on Oct. 25. That charge includes restructuring and severance costs, as AIG cuts about 1,500 jobs and integrates some operations of the two firms.
AIG's $23 billion deal to buy American General - the world's largest-ever insurance purchase - closed in late August.
AIG is the world's largest insurance company by market value.
-- from staff and wire reports 
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