Nov. 3 (Bloomberg) -- American International Group Inc. said former subsidiary Transatlantic Holdings Inc. raised its demand for compensation in an arbitration case over securities- lending losses by 43 percent.

“Transatlantic has increased its claimed damages to an amount of approximately $500 million” as of Oct. 31, compared with $350 million previously, New York-based AIG said today in a regulatory filing. “AIG is unable to reasonably estimate the possible loss, if any, arising from this arbitration.”

--Editors: Dan Kraut, David Scheer

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To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net