Declarations

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A Continuing Objective

“Our objective remains the same at AIG, which is to repay taxpayers and position AIG over time as a strong, independent company worthy of investor confidence.”

—An anonymous source from American International Group Inc. (AIG) commenting on continued negotiations with the U.S. government on a deal through which the Treasury Department would exit its investment in the bailed-out insurer. The situation is still fluid and there are many moving parts, one of the sources said. A possible conversion of the Treasury’s $49 billion preferred stake in AIG into common stock is one of the options being discussed, Reuters reported. Such a conversion, which could start as soon as the first half of next year, would possibly raise the government’s stake in AIG to above 90 percent from nearly 80 percent. The Treasury would sell its common stake to investors over time. The sources are anonymous because talks are not public.

Woefully Unprepared

“We’re not losing policies, even in these tough economic times, but we’re not really gaining much either. In terms of protecting one’s individual home, one’s main asset in one’s life, California is woefully unprepared for the next big earthquake.”

—California Earthquake Authority President and CEO Glenn Pomeroy noting that the takeup rate for homeowners earthquake insurance policies is about 12 percent. The CEA saw spikes in new policy sales in March and April, following large earthquakes in Chile and Mexico, but policy sales are tapering off. There is a 99 percent chance of a 6.7 magnitude or greater earthquake striking California in the next 30 years.

Topics California AIG

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