The AIG website provides 2008 results for the General Insurance business. It finished 2008 with a combined ratio of 109%. The 4th quarter combined was 129%. The commercial business finished the year at 107% and the personal lines at 120%. The business shrank and lost a ton of $$. Who really wants it??
How can a carrier, or a fleet, maintain an A rating by AM Best when their stock is trading at 48 cents? When they lost $62Billion last quarter? When their losses were $23/share! Just where are their $Trillion in assets? Are these assets real or imagined?? Credibility is about ZERO. Statutory results –Insolvent!
Let them go under, who gives a sh t!. Ed Liddy is an idiot, he was CEO back in the 90’s and ran the #1 retail company almost bankrupt,(Sears), now without him they are back from the dead, he ran Allstate for years and changed all the insurance agents to so called independents, yet you can only sell Allstate products, and also promised to have the stock at $100 a share in 5 years, never got higher than mid $50s because he’s an overpaid idiot. Let AIG go bankrupt it’ll be better for the economy.
WHY would you keep Kris Moor? In fact, fire the entire top executive mgt. (who ever is left). The folks haning in have driven the company into the ground. There is NO leadership in the company; employees are dispondant. Frankly, Liddy and Moor are the last folks who should be leading a charge to save this company. Get some real leadership in place, then talk to us about new the insurance operations. Agreed – AM Best looses here; eventhough a downgrade would devistate them, but come on! Without a federal backstop, they’d already be out of biz!
I am glad AIG is finally following a best advantaged course that is self-evident; that the commercial insurance units should be packaged and spun off from the financial units that are in trouble due to the tens of billions of credit swap guarantees issued by these units to support Mr. Clinton’s subprime mortgage industry.
With $26 billion in Surplus and U.S. Government backing, reflecting continued 85% federal ownership, the newly constituted AIG commercial insurance company unit will clearly be the most financially sound commercial P&C insurance group on the planet — as it is now — but without the stigma of adverse association. The fact this is a case of the goverment being part of a good deal for the taxpayer, makes it surprising as well as a welcome development.
And exactly how does this holding company re-pay the BILLIONs that AIG owes us? Right now AIG owes roughly $666 to every person in the United States…that’s all 300,000,000. Man, woman or child. If they just pay that back its better than Obama’s tax break…
Really this is just great. Nothing to worry about.
If you all can’t see it by now, you need to get a reality check. This is not about saving AIG or any part of its allegedly viable businesses. This is about saving and keeping propped up all the counter parties with whom AIG did their funny derivatives business. If AIG can’t continue to post collateral for these worthless mortgage backed securities, then their counter parties, like the almighty Goldman Sachs will fall, forget about all the other international players. So in other words, our Federal Govt. will continue to keep pumping taxpayer money into this shell and sham of a company in order to avoid a systemic failure of the entire banking and financial system, domestically and worldwide. Final projection prediction – AIG will cost taxpayers + or – 500 BILLION.
At the recent SEnate hearing it was made clear that only the AAA rated tranches were the subject of the AIG credit swaps. It was testified and agreed by the witnesses at the hearing, that none of the underlying debt obligations comprising these AAA rated tranches have defaulted. The reason AIG had to cough up billions is because they are contractually required to do so as their credit rating declines from the Investment Grade level stipulated under the terms of the Credit Swap guarantees. This reveals the incredible stupidity of our Congressional leaders who clearly do not grasp the fact that they could have saved the taxpayer billions of dollars, and still can, by simply issuing a U.S. government guarantee to support the Credit Swap parties.Congressional representatives have no right to be angry about their own malfeasance. Indeed, we have a right to be angry with the same congressional representatives for requiring Fannie and Freddie, who back at least 80% of all mortgages written, to comprise 50% of their loans to individuals who do not meet normal credit standards — thereby forcing banks to comply if they want Freddie and Fannie’s support. We have a right to be angry with them for inventing “subprime, and Ninja (no income no job) lending. We have a right to be angry with the same representatives rejecting the call to investigate Fannie and Freddie because their pockets were being lined by Fannie and Freddie executives whom our representatives allowed to be compensated based on volume, to encourage them to force this predictably illiquid lending, and thereby earning up to $50 million a year.
We have a right to be angry with our congressional representatives for passing a “Stimulus” bill that was 10% tax breaks, 20% welfare and 70% social engineering. And for proposing a budget that contains 4,500 pet projects not subject to debate or discussion that will add no meaningful impetus to our economy.
Yes we have a right to be angry at congressional stupidity for creating this problem, for the practice of blatant graft and corruption and for failing to take the most logical and efficient step to solve the problem, such as guaranteeing the credit swap parties or guaranteeing the insolvent debt of Fannie and Freddie. Instead they propose to subsidize the insolvent mortgage holders and create a deficit that will bankrupt our nation.
What we need fare more than federal insurance regulation is a reform of our congressional legislative process to eliminate the blatant graft and corruption that has systemically infected the country and our social/economic system.
If we would all call congress every day to tell them to do their job and debate every spending measure and advertise it to the public, and stop taking bribes from lobbyist and special interests, and call them until they comply or get out, we might have a chance for survival.
This is not at all complicated. It is all really pretty damn simple.
QBE is a backwater joke. what’s their surplus in real currency?
what a joke
For an acquisition company, AIG forced to bail on profitable books is like Christmas in March for a Company like QBE.
The AIG website provides 2008 results for the General Insurance business. It finished 2008 with a combined ratio of 109%. The 4th quarter combined was 129%. The commercial business finished the year at 107% and the personal lines at 120%. The business shrank and lost a ton of $$. Who really wants it??
S.O.S. for this P.O.S.!!
How can a carrier, or a fleet, maintain an A rating by AM Best when their stock is trading at 48 cents? When they lost $62Billion last quarter? When their losses were $23/share! Just where are their $Trillion in assets? Are these assets real or imagined?? Credibility is about ZERO. Statutory results –Insolvent!
Let them go under, who gives a sh t!. Ed Liddy is an idiot, he was CEO back in the 90’s and ran the #1 retail company almost bankrupt,(Sears), now without him they are back from the dead, he ran Allstate for years and changed all the insurance agents to so called independents, yet you can only sell Allstate products, and also promised to have the stock at $100 a share in 5 years, never got higher than mid $50s because he’s an overpaid idiot. Let AIG go bankrupt it’ll be better for the economy.
WHY would you keep Kris Moor? In fact, fire the entire top executive mgt. (who ever is left). The folks haning in have driven the company into the ground. There is NO leadership in the company; employees are dispondant. Frankly, Liddy and Moor are the last folks who should be leading a charge to save this company. Get some real leadership in place, then talk to us about new the insurance operations. Agreed – AM Best looses here; eventhough a downgrade would devistate them, but come on! Without a federal backstop, they’d already be out of biz!
Why has goverment allowed AIG to not SELL all of it’s units?
Nope we are stupid enough to let them urinate it away. So now we are actually going to sell something $180 BIllION latter. INCREDIBLE!
SO MAD AT THIS POINT!!!!
I am glad AIG is finally following a best advantaged course that is self-evident; that the commercial insurance units should be packaged and spun off from the financial units that are in trouble due to the tens of billions of credit swap guarantees issued by these units to support Mr. Clinton’s subprime mortgage industry.
With $26 billion in Surplus and U.S. Government backing, reflecting continued 85% federal ownership, the newly constituted AIG commercial insurance company unit will clearly be the most financially sound commercial P&C insurance group on the planet — as it is now — but without the stigma of adverse association. The fact this is a case of the goverment being part of a good deal for the taxpayer, makes it surprising as well as a welcome development.
“A” rated — ‘Schmay-rated” “A used to mean “Excellent”. I wonder what the “A” stands for now?
And exactly how does this holding company re-pay the BILLIONs that AIG owes us? Right now AIG owes roughly $666 to every person in the United States…that’s all 300,000,000. Man, woman or child. If they just pay that back its better than Obama’s tax break…
Really this is just great. Nothing to worry about.
If you all can’t see it by now, you need to get a reality check. This is not about saving AIG or any part of its allegedly viable businesses. This is about saving and keeping propped up all the counter parties with whom AIG did their funny derivatives business. If AIG can’t continue to post collateral for these worthless mortgage backed securities, then their counter parties, like the almighty Goldman Sachs will fall, forget about all the other international players. So in other words, our Federal Govt. will continue to keep pumping taxpayer money into this shell and sham of a company in order to avoid a systemic failure of the entire banking and financial system, domestically and worldwide. Final projection prediction – AIG will cost taxpayers + or – 500 BILLION.
One definition of insanity is doing the same thing over and over and expecting a different result.
The “new” leaders of AIU Holdings are the same AIG “old boys” who already destroyed one giant P&C company.
Why would anyone expect a different outcome this time around?
At the recent SEnate hearing it was made clear that only the AAA rated tranches were the subject of the AIG credit swaps. It was testified and agreed by the witnesses at the hearing, that none of the underlying debt obligations comprising these AAA rated tranches have defaulted. The reason AIG had to cough up billions is because they are contractually required to do so as their credit rating declines from the Investment Grade level stipulated under the terms of the Credit Swap guarantees. This reveals the incredible stupidity of our Congressional leaders who clearly do not grasp the fact that they could have saved the taxpayer billions of dollars, and still can, by simply issuing a U.S. government guarantee to support the Credit Swap parties.Congressional representatives have no right to be angry about their own malfeasance. Indeed, we have a right to be angry with the same congressional representatives for requiring Fannie and Freddie, who back at least 80% of all mortgages written, to comprise 50% of their loans to individuals who do not meet normal credit standards — thereby forcing banks to comply if they want Freddie and Fannie’s support. We have a right to be angry with them for inventing “subprime, and Ninja (no income no job) lending. We have a right to be angry with the same representatives rejecting the call to investigate Fannie and Freddie because their pockets were being lined by Fannie and Freddie executives whom our representatives allowed to be compensated based on volume, to encourage them to force this predictably illiquid lending, and thereby earning up to $50 million a year.
We have a right to be angry with our congressional representatives for passing a “Stimulus” bill that was 10% tax breaks, 20% welfare and 70% social engineering. And for proposing a budget that contains 4,500 pet projects not subject to debate or discussion that will add no meaningful impetus to our economy.
Yes we have a right to be angry at congressional stupidity for creating this problem, for the practice of blatant graft and corruption and for failing to take the most logical and efficient step to solve the problem, such as guaranteeing the credit swap parties or guaranteeing the insolvent debt of Fannie and Freddie. Instead they propose to subsidize the insolvent mortgage holders and create a deficit that will bankrupt our nation.
What we need fare more than federal insurance regulation is a reform of our congressional legislative process to eliminate the blatant graft and corruption that has systemically infected the country and our social/economic system.
If we would all call congress every day to tell them to do their job and debate every spending measure and advertise it to the public, and stop taking bribes from lobbyist and special interests, and call them until they comply or get out, we might have a chance for survival.
This is not at all complicated. It is all really pretty damn simple.