The company assets are being prepared for sale. Of course you are going to hear positive spin about how well they are doing. Do we think they are going to come out and say, “truth is, our retention is plummeting and we aren’t writing any new business?”
They need to try and hold onto their asset value as long as possible so liquidation isn’t diminished (as much).
Do the math, they are having to pay back $1B a month in interest alone. How do they possibly sell enough to pay the loan and interest back? They will have to sell P&C units, if not all of them.
we heard positive news from this beast for the past 10 years. Is there really any rson to have any faith what-soever in anything it says today? Lie to me once, and I believe it, –Shame on you — Lie to me twice Shame on me. I deeply believe the entire bd of directors of this company should all be up on criminal charges starting with High Treason against the American People and in fact the World. But Alas, they will all just continue to laugh all the way to bank at the nations expense. It’s a sad commentary on Capitalism and the “Justice System”.
AIG CURRNET BEST’S RATING IS bbb+ . ANYONE WITH A RATING OF LESS THAN AAA WILL AUTOMATICALLY LOSE A LOT OF BUSINESS. CLIENTS WILL NOT STICK WITH AN INFERIOR COMPANY DURING THESE TOUGH TIMES.
So we let AIG write new business and push the prices down when they have been bailed out by the US or us. AIG now states to us, ” that the other part of our company located down the hall did the improper underwriting, not us”. Oh, and how many times did we see AIG in the paper for lying on thier financials? Now they have to pay the goverment back a average of 10% of thier sales to make up the intrest ,,,,,high over head to me? Guess who they are like US POST OFFICE…..
That liberal media scared the heck out of everybody for no reason! What a relief to hear that everything is rosy. That Kool Aid is delicious. Thanks AIG!
Real Funny, “AIG fighting back” That’s right fighting back with our tax dollars. How unfair is this? Why did we bail out AIG again? And why didn’t we bail out Lehman Brothers? I would assume that the Secretary of Treasury didn’t own 20% of Lehman Brother Shares.
I don’t know or understand much about all this high finance but with AIG bragging about $26 Billion in reserves “in the commercial unit alone”, why don’t they just borrow from all the great performing units instead of us? In fact, Mr. Doyle sounded so pleased with everything one would think nothing has happened in the last four weeks to raise any flags. Sort of sounds like Mr. Bush’s “mission accomplished” speech………the Iraq war is over isn’t it?
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.
The company assets are being prepared for sale. Of course you are going to hear positive spin about how well they are doing. Do we think they are going to come out and say, “truth is, our retention is plummeting and we aren’t writing any new business?”
They need to try and hold onto their asset value as long as possible so liquidation isn’t diminished (as much).
And sell their P&C business to repay the Fed loan. GIVE US OUR MONEY BACK
Do the math, they are having to pay back $1B a month in interest alone. How do they possibly sell enough to pay the loan and interest back? They will have to sell P&C units, if not all of them.
we heard positive news from this beast for the past 10 years. Is there really any rson to have any faith what-soever in anything it says today? Lie to me once, and I believe it, –Shame on you — Lie to me twice Shame on me. I deeply believe the entire bd of directors of this company should all be up on criminal charges starting with High Treason against the American People and in fact the World. But Alas, they will all just continue to laugh all the way to bank at the nations expense. It’s a sad commentary on Capitalism and the “Justice System”.
AIG CURRNET BEST’S RATING IS bbb+ . ANYONE WITH A RATING OF LESS THAN AAA WILL AUTOMATICALLY LOSE A LOT OF BUSINESS. CLIENTS WILL NOT STICK WITH AN INFERIOR COMPANY DURING THESE TOUGH TIMES.
Best doesn’t use bbb+ and AAA. Those are Standard and Poors’ ratings.
So we let AIG write new business and push the prices down when they have been bailed out by the US or us. AIG now states to us, ” that the other part of our company located down the hall did the improper underwriting, not us”. Oh, and how many times did we see AIG in the paper for lying on thier financials? Now they have to pay the goverment back a average of 10% of thier sales to make up the intrest ,,,,,high over head to me? Guess who they are like US POST OFFICE…..
That liberal media scared the heck out of everybody for no reason! What a relief to hear that everything is rosy. That Kool Aid is delicious. Thanks AIG!
Real Funny, “AIG fighting back” That’s right fighting back with our tax dollars. How unfair is this? Why did we bail out AIG again? And why didn’t we bail out Lehman Brothers? I would assume that the Secretary of Treasury didn’t own 20% of Lehman Brother Shares.
I don’t know or understand much about all this high finance but with AIG bragging about $26 Billion in reserves “in the commercial unit alone”, why don’t they just borrow from all the great performing units instead of us? In fact, Mr. Doyle sounded so pleased with everything one would think nothing has happened in the last four weeks to raise any flags. Sort of sounds like Mr. Bush’s “mission accomplished” speech………the Iraq war is over isn’t it?
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.