You hit the nail on the head. There is a lot of anaylsis here on “What did he really mean when he said this?”
Please remember that a CEO of a $40b P&C company is a politician. He wants to prop up the value of his company so that it isn’t aquired by a Zurich at bargain basement prices.
…I am embarrassed to admit I am in the same profession as SOME that have responded. Either you can not think for yourselves or can not read and comprehend what has happened to the ENTIRE WORLD’s economy. AIG has plenty of assets worth plenty of $$$ but the word is liquidity! The government has faith in AIG and that selling some assets can generate the LIQUIDITY needed to back the contracts and support the ratings needed. The “taxpayers” didnt give this money to AIG!! Most of you should re read the lengthly article as most disregarded important information
The liquidity issue is partly because of the high capitalization requirements the states and ratings companies use to maintain “solvency”. That $26B mentioned is partitioned out amongst many subsidiaries and is their primarily to maintain their policyholder surplus. NY was working to allow AIG to ignore some of the capitalization issues so that they could pull money from the subsidiaries without consequence when the Feds stepped in to bail them out.
Neither NY or PA felt AIG had any issues within the casualty division. Both wrote statements agreeing that the subs accountable to them were very solvent. (sufficient funds to pay all debts) The subs could easily have “bailed” out AIG but the parent company did not want to borrow from the subs’ surplus.
Let’s face it…it does not look good for AIG, drowning in interest payments from the gov’t loan, employees jumping ship and flaking off business everyday. They will be forced to sell the P&C business.
Don’t worry……….we won’t be hearing about how strong AIG’s P&C business is for much longer as they are becoming the worst of the bottom feeders in the industry. As someone who deals in commercial P&C insurance daily I can truly say that AIG has gone from a pack a day cigarette smoker to a crack fiend overnight!!! Don’t kid yourself they are going down fast!!!!!!!!!!!!!
I thought I was reading the Insurance Journal, where did the piece of balanced reporting come from? Come on now, positive news does not make the press here. Even worse, it gives people nothing to complain about! This is crap.
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Ixneonthefavre,
You hit the nail on the head. There is a lot of anaylsis here on “What did he really mean when he said this?”
Please remember that a CEO of a $40b P&C company is a politician. He wants to prop up the value of his company so that it isn’t aquired by a Zurich at bargain basement prices.
…I am embarrassed to admit I am in the same profession as SOME that have responded. Either you can not think for yourselves or can not read and comprehend what has happened to the ENTIRE WORLD’s economy. AIG has plenty of assets worth plenty of $$$ but the word is liquidity! The government has faith in AIG and that selling some assets can generate the LIQUIDITY needed to back the contracts and support the ratings needed. The “taxpayers” didnt give this money to AIG!! Most of you should re read the lengthly article as most disregarded important information
The liquidity issue is partly because of the high capitalization requirements the states and ratings companies use to maintain “solvency”. That $26B mentioned is partitioned out amongst many subsidiaries and is their primarily to maintain their policyholder surplus. NY was working to allow AIG to ignore some of the capitalization issues so that they could pull money from the subsidiaries without consequence when the Feds stepped in to bail them out.
Neither NY or PA felt AIG had any issues within the casualty division. Both wrote statements agreeing that the subs accountable to them were very solvent. (sufficient funds to pay all debts) The subs could easily have “bailed” out AIG but the parent company did not want to borrow from the subs’ surplus.
Meanwhile….AIG bleeding employees – 5 sr managers resigned yesterday…including 2 co’ presidents
Let’s face it…it does not look good for AIG, drowning in interest payments from the gov’t loan, employees jumping ship and flaking off business everyday. They will be forced to sell the P&C business.
How many more articles are we going to see telling us how stable the insurance company is?
Don’t worry……….we won’t be hearing about how strong AIG’s P&C business is for much longer as they are becoming the worst of the bottom feeders in the industry. As someone who deals in commercial P&C insurance daily I can truly say that AIG has gone from a pack a day cigarette smoker to a crack fiend overnight!!! Don’t kid yourself they are going down fast!!!!!!!!!!!!!
The “Quinn”
This is the same*** Reliance fed me and the test of the insurance community.
I thought I was reading the Insurance Journal, where did the piece of balanced reporting come from? Come on now, positive news does not make the press here. Even worse, it gives people nothing to complain about! This is crap.