“Considering the forecast for hurricane season this year and secondary peril losses year-to-date, we believe that using AIG's last year total catastrophe losses is a good proxy for full year 2024.”

In context

“the prior year. Based on earned premium roll-forward and barring unforeseen significant changes in loss trends, we expect the accident year loss ratio ex-catastrophes will remain strong in the second half of 2024 at approximately the same level as the first half. Turning to natural catastrophes. The industry globally had another quarter of elevated losses with approximately 100 events. For AIG, second quarter catastrophe losses totaled $325 million or 5.7 points on the loss ratio, principally from secondary apparels, including severe convective storms in the United States, floods in the Middle East and Brazil, and hail in Japan with a roughly 50-50 split between North America and International. Our largest loss in the quarter totaled $90 million from exceptionally heavy rains in the UAE. Considering the forecast for hurricane season this year and secondary peril losses year-to-date, we believe that using AIG's last year total catastrophe losses is a good proxy for full year 2024. While actual losses will depend on the size and strength of events, our underwriting standards, limits and reinsurance programs, both occurrence and aggregate will help reduce the net impact of catastrophe frequency and severity on AIG's balance sheet. Nevertheless, on a global basis, the third quarter is usually by far the highest catastrophe quarter with losses averaging 40% to 50% of the total for the year. Turning to reserves, prior year development, net of reinsurance was a favorable $79 million, reflecting the net result from DVRs completed on more than $20 billion of reserves, about 45% of the total in the quarter. Overall, the DVRs, which included U.S. casualty, resulted in net favorable development on workers' compensation and modest net unfavorable development of $30 million on”