AIG Subsidiaries Sue Reinsurer for Sept. 11 Losses

March 5, 2002

A group of subsidiaries of American International Group have filed suit in a Manhattan Court against one of AIG’s catastrophe reinsurers, the American National Insurance Co., for purportedly failing to make payment on their share of losses derived from the Sept. 11 attacks.

According to Reuters, the plaintiffs, American Home Assurance Co., National Union Fire Insurance Co., American International Life Assurance Co. and AIG Life Insurance Co., are looking for almost $6 million for the losses, including unspecified interest. The companies have already paid millions of dollars in claims to families of the deceased.

The suit stated that a loss treaty reinsures the plaintiffs’ accidental death policies and coverage. Paid losses billed to the treaty so far have exceeded $25 million and are likely to increase.

The suit further alleged that American National Insurance’s share of losses totals $7.2 million, of which only $1.3 million has been paid, and American National is denying payment of the remaining $5.9.

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