The unfortunate fact of the matter is that most, if not all, businessowners/insureds believe that someone somewhere in the government is going to protect them against their bad judgement. I’ve seen it time and again throughout my 32 years in the business. Good luck trying to convince a client to buy the higher-priced product. And when the cheap carrier goes down, the insured will point the finger at us.
We can’t assess the financial stability of an insurance organization until all tax payer money has dried up. Should be another week or so. Thank you for your patience.
I agree that there has to be a cut off point in where help is given – and can see why some people say the help should never have been given in the 1st place.
AIG heavily invest in US industries worldwide – providing finance to American companies. If AIG go, then there will be a huge collapse of US industry. As far as I see it – this is the reason that the administration is providing a bailout – there would be more than 109,000 AIG employees seeking employment.
The Insurance arm of AIG is protected by regulators – i.e. they have money to pay claims. Would not be able to trade without this.
The problems are on the finance side – which we already know about.
Yes, the decision to prop up AIG or not is an “easy” one. Would you rather cut off your left hand or shoot yourself in the temple? In one case you may bleed to death, but the other’s outcome is certain.
Let’s hope the music that is being danced to is not a funeral dirge, being played on a wind-up phonograph from olden days,
with the spring having come t o t h e e n d.
it does not matter how many folks will be out of a job. if a company did not do it’s job correctly it should fail. we allow smaller companies to fail, why should this be any different for a big company. this will all change as we get things corrected. we just need to let things ride out the storm and then it will get better.
I agree with the sentiment on letting them fail. I don’t agree with the number of so-called professionals on this site dancing on the grave of a competitor. Just remember, most of what was done here has probably been twisted from actual reality. Your company might the the next one to achieve this level of attention. No sympathy for them, just no joy in seeing all the people at AIG lose their jobs.
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The unfortunate fact of the matter is that most, if not all, businessowners/insureds believe that someone somewhere in the government is going to protect them against their bad judgement. I’ve seen it time and again throughout my 32 years in the business. Good luck trying to convince a client to buy the higher-priced product. And when the cheap carrier goes down, the insured will point the finger at us.
We can’t assess the financial stability of an insurance organization until all tax payer money has dried up. Should be another week or so. Thank you for your patience.
AIG bailout funds rec’d to date: $150b
AIG revenues: $126.3b
Anyone else notice something funky about this.
Its funny to think they had a market cap of $1T just 6 months ago. Now it’s a measely $1.1b
I agree that there has to be a cut off point in where help is given – and can see why some people say the help should never have been given in the 1st place.
AIG heavily invest in US industries worldwide – providing finance to American companies. If AIG go, then there will be a huge collapse of US industry. As far as I see it – this is the reason that the administration is providing a bailout – there would be more than 109,000 AIG employees seeking employment.
The Insurance arm of AIG is protected by regulators – i.e. they have money to pay claims. Would not be able to trade without this.
The problems are on the finance side – which we already know about.
Is the surplus of the commercial lines division of AIG intact? Yes.
Does the additional funding need arise from “insurance” operations. No.
There is a strong likelyhood, IMHO, that the fiscal stimulus won’t work and that a depression is in the offing.
Meanwhile, the “credit default swaps” that AIG guaranteed are eating the company alive:
except for the policyholder surplus, that is protected from the effects of the real estate related mismanagement issues.
Save your outrage, is my advice. You may need it some day.
“Who you kidding, David? According to AIG’s 3Q financial supplement, 80% of their real estate assets sit on the books of the insurance operations.”
Well, we’ll see. My point referred to their policyholder surplus’ protected status. We’ve no argument over the overall “corporate governance”.
Yes, the decision to prop up AIG or not is an “easy” one. Would you rather cut off your left hand or shoot yourself in the temple? In one case you may bleed to death, but the other’s outcome is certain.
Let’s hope the music that is being danced to is not a funeral dirge, being played on a wind-up phonograph from olden days,
with the spring having come t o t h e e n d.
Ashes, ashes, all fall down……..
it does not matter how many folks will be out of a job. if a company did not do it’s job correctly it should fail. we allow smaller companies to fail, why should this be any different for a big company. this will all change as we get things corrected. we just need to let things ride out the storm and then it will get better.
I agree with the sentiment on letting them fail. I don’t agree with the number of so-called professionals on this site dancing on the grave of a competitor. Just remember, most of what was done here has probably been twisted from actual reality. Your company might the the next one to achieve this level of attention. No sympathy for them, just no joy in seeing all the people at AIG lose their jobs.