AIG has estimated that Hurricane Katrina will cost the insurer around $1.1bn (£600m) after tax.
AIG said in a statement that its after-tax insurance-related losses will total $900m (£497m) and that it expects to incur an additional charge of roughly $170m (£94m) related to reinstatement premiums.
In addition, AIG said it expects the catastrophes to result in $60m (£33m) after tax in non-insurance losses, mainly from consumer finance operations, investment impairments and other factors.
