AIG Says the Hurricane Season Will Cost It $3 Billion

American International Group said Monday it expects to book pretax catastrophe losses of about $3 billion in the third quarter mainly related to hurricanes Harvey, Irma and Maria.

It estimated losses of about $1 billion each from Harvey and Irma, up to $700 million from Maria and additional catastrophe losses, including earthquakes in Mexico, of about $150 million.

Morgan Stanley analysts said the losses were slightly above their estimate of $2.5 billion, but were manageable as it equated to about 2.6 percent of the company’s book value. The analysts, who have an “overweight” rating on the stock, also highlighted that the company has more than $3.5 billion in cash and short-term investments, a comfortable buffer.

Read: From Monte Carlo, Insurers’ View of the Impact of Irma and Harvey Is Surprisingly Rosy

The stock market didn’t like it, though, and pushed AIG’s shares down 1.7 percent in extended trading after the bell Monday.

Insurers and reinsurers are counting the costs of the hurricanes that tore into parts of the U.S., while ravaging several islands in the northern and eastern Caribbean.

Read: The Hidden Costs of Hurricanes

Chubb Ltd, the world’s largest listed property and casualty insurer, has estimated after-tax losses of up to $1.28 billion from hurricanes Harvey and Irma.

Germany’s Munich Re warned it could miss its profit target this year, the first major reinsurer to flag a hit to earnings from damage caused by the storms.

Hurricane season in the Atlantic is still in full swing and Morgan Stanley said it expects overall insured losses from this year’s catastrophes to approach $100 billion.

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