AIG Climbs After Firm Details Business-Interruption Exclusions
- Company books $272 million in catastrophe costs tied to virus
- Virus to be industry’s largest catastrophe loss ever, CEO says
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American International Group Inc. shares climbed after executives said the company has limited exposure to business-interruption losses, a topic that’s spurred questions as companies across the U.S. shut down to help stem the spread of the coronavirus.
Among AIG’s policies, “the overwhelming majority contain exclusions for losses related to viruses, and otherwise require a showing that the virus caused direct physical loss or damage that was the cause of the business interruption,” President Peter Zaffino said Tuesday on an earnings conference call. “We are confident these exclusions and related terms and conditions will be upheld” if they are challenged.