Everyone ready for AIG to be bailed out again? This is just the beginning, of further major losses. Is AIG managements’ best idea to continually buy back their overvalued shares?
Expect further layoffs in the thousands.
Decades of under-pricing their business to gain finally catching up with them. And now that they are primarily a P&C company, fewer places to hide that mess.
Dave, do you have visions of the Titanic with people re-arranging the deck chairs at AIG? What will their next Best Rating be after if is looked at? What will it take to be a B rated market and under supervision?
Dave, CEO’s with other companies have been let go for a lot less than this mess. “Too big to fail” rings in my memory. Perhaps they gave too much to the Democrats.
Yes, because deregulation of the financial markets had zero to do with the most recent collapse.
February 17, 2016 at 11:33 am
Yogi Polar Berra says:
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Were there no details as to which specific years developed most adversely? Could it be concentrated in accident years during and after the bailout? Underwriters outside AIG felt they burned taxpayer money to keep accounts. … are those chickens coming home to develop adversely now?
It’s hard to believe that AIG goes from Price to Pauper in 10 years. The loss of Hank Greenberg at the helm has created a vacuum of talent, hardline management of the Group Presidents, and focus on the numbers. Anyone can run a company at a loss. If your not making money your giving your product away for free. If you don’t price your product, if you don’t spend the money to examine the risk, if your doing too many things with too little understanding and management, your bound to fail. Regroup, refocus, reorganize, simplify the structure, demand accountability, focus on your clients needs, cross border resources, go where the action is, price the risk appropriately, and remember one thing. There is no risk that is uninsurable, it’s all a matter of making a deal that all parties will agree to.
FFA, yes I read that somewhere in the past. The story went that the government bailed out AIG because their benefit plan was with them and it would fail if the company failed. No wonder the $182 billion rescue plan went off without a hitch.
Trump & Hillary are walking down the street together. They come across a homeless man. Trump reaches in his pocket pulls out a business card and says go to address there and I’ll give you a job. He also gives him $20.00.
Next homeless man they come across, Hillary writes down directions to the local welfare office and hands it to him. She then reaches in Trumps pocket and pulls out a $20. She keeps $15.00 for her Admin fees and hands the homeless guy $5.00.
Well, the race in the Nevada primary didn’t show much interest with the voters. 4,300 votes for Hilliary and 3,800 votes for Bernie. That is state wide. Sounds like more of a county or city election rather than a Presidential primary.
Well, the results of the GOP primary are in and they drew roughly 10 times the number of votes over Hilliary/Bernie. Also, of note, Trump drew 46% of the Hispanic vote, far more than the two Hispanic candidates. I thought Hispanics were upset with Trump over the wall and deportation.
Everyone ready for AIG to be bailed out again? This is just the beginning, of further major losses. Is AIG managements’ best idea to continually buy back their overvalued shares?
Expect further layoffs in the thousands.
Decades of under-pricing their business to gain finally catching up with them. And now that they are primarily a P&C company, fewer places to hide that mess.
Dave, do you have visions of the Titanic with people re-arranging the deck chairs at AIG? What will their next Best Rating be after if is looked at? What will it take to be a B rated market and under supervision?
“primarily driven by the previously announced $3.0 billion charge for adverse prior year loss reserve development in Property Casualty”
Actually $3.6 billion. But what’s $600,000,000 amongst friends?
Dave, CEO’s with other companies have been let go for a lot less than this mess. “Too big to fail” rings in my memory. Perhaps they gave too much to the Democrats.
According to one source, AIG contributed more to Republicans than Democrats in 2014, with the largest amount going to Mitch McConnell.
https://www.opensecrets.org/orgs/recips.php?id=D000000123&chamber=&party=&cycle=2014&state=&sort=A
Apparently, they didn’t give ENOUGH to Republicans to remove red tape and other costly regulations. Zero to Dems in the future would be a start.
Yogi Polar Berra,
Yes, because deregulation of the financial markets had zero to do with the most recent collapse.
Were there no details as to which specific years developed most adversely? Could it be concentrated in accident years during and after the bailout? Underwriters outside AIG felt they burned taxpayer money to keep accounts. … are those chickens coming home to develop adversely now?
Spend the last 18 years at AIG,
Best couple of years of my life
It’s hard to believe that AIG goes from Price to Pauper in 10 years. The loss of Hank Greenberg at the helm has created a vacuum of talent, hardline management of the Group Presidents, and focus on the numbers. Anyone can run a company at a loss. If your not making money your giving your product away for free. If you don’t price your product, if you don’t spend the money to examine the risk, if your doing too many things with too little understanding and management, your bound to fail. Regroup, refocus, reorganize, simplify the structure, demand accountability, focus on your clients needs, cross border resources, go where the action is, price the risk appropriately, and remember one thing. There is no risk that is uninsurable, it’s all a matter of making a deal that all parties will agree to.
This might be a good organization for the Profit to look into taking over. People, Process, Product. I wonder if he could or would want to fix it. LOL
Are you suggesting OBama take over as CEO?
In IL, AIG is using Pool Rates for their comp pricing. Must mean the Pool is running at a loss too.
I also heard in years past – dont quote me on this as I can remember where I read it – most of the politicians Retirement is/was with AIG.
FFA, yes I read that somewhere in the past. The story went that the government bailed out AIG because their benefit plan was with them and it would fail if the company failed. No wonder the $182 billion rescue plan went off without a hitch.
Trump & Hillary are walking down the street together. They come across a homeless man. Trump reaches in his pocket pulls out a business card and says go to address there and I’ll give you a job. He also gives him $20.00.
Next homeless man they come across, Hillary writes down directions to the local welfare office and hands it to him. She then reaches in Trumps pocket and pulls out a $20. She keeps $15.00 for her Admin fees and hands the homeless guy $5.00.
Well, the race in the Nevada primary didn’t show much interest with the voters. 4,300 votes for Hilliary and 3,800 votes for Bernie. That is state wide. Sounds like more of a county or city election rather than a Presidential primary.
Well, the results of the GOP primary are in and they drew roughly 10 times the number of votes over Hilliary/Bernie. Also, of note, Trump drew 46% of the Hispanic vote, far more than the two Hispanic candidates. I thought Hispanics were upset with Trump over the wall and deportation.