American International Group Inc. (AIG) revealed a decline in first-quarter profits Thursday, citing considerable payouts stemming from the Los Angeles County wildfires in January.
The multinational finance and insurance corporation reported $525 million in total catastrophe-related charges in the quarter, with $460 million of those losses a direct result of the Los Angeles County fires, in which at least 30 lives were lost and more than 16,000 buildings were destroyed.
The wildfires rank among the costliest in the history of California. The insurance industry’s losses amount to an estimated $40 billion, reported Swiss Re, a reinsurance firm. UCLA’s Anderson School of Management estimates the total property and capital losses could reach $131 billion….