(by Geck Finn)

American International Group, the world’s largest insurance company, says hurricane damage in Florida may prevent decline in property insurance.

Its chairman Maurice "Hank" Greenberg at an investment conference in New York has said it may “stabilize pricing in some classes of business”.

The appearance of new insurers in the market made AIG cut commercial property rates about 15% this year which led to decreasing of growth prospects in the company’s U.S. property and casualty business.

AIG expects $80 million to $100 million of after-tax losses from three-weeks-ago hit U.S. Hurricane Charley. Greenberg said it was early to assess losses from Frances.

This quarter appeared to be very difficult for most of the insurers. Charley cost $6.8 billion for them. The expected losses from Hurricane Frances account for $3 billion to $6 billion. Surplus, insurers also wary Hurricane Ivan headed into the Caribbean Sea with winds of 140 miles per hour to hit Florida.