AIG, Inc. continues to work with regulators during this difficult time for financial markets. As has been stated many times publicly, AIG Property Casualty Insurance is not a solvency risk; the value of its assets exceeds its liabilities.
AIG Private Client Group is continuing to write new business.
In addition, here are a few more important facts to note:
*AIG Private Client Group, which operates as part of AIG Property Casualty Insurance, faces no such liquidity concerns.
*AIG Property Casualty Insurance has $26.7 billion in policyholder surplus, as well as invested assets of $65 billion. These assets are protected by law and cannot be taken from policyholders!
As a point of reference, a leading AIG Private Client Group competitor has policyholder surpluses of $14 billion.
As you likely know, yesterday AIG reached an agreement in principle with the New York State regulators to exchange illiquid assets from the parent company with more liquid assets in operating insurance companies. These assets are of like kind and quality to one another; the only difference is duration.
AIG Property Casualty Insurance has the resources to pay policyholder claims and will continue to do so. On average, we are paying $73 million in claims each day.
AIG Property Casualty Insurance was downgraded by A.M. Best yesterday. Even with this downgrade, our insurance companies carry a rating of “A” or “Excellent.” This rating compares favorably with most major companies.
AIG Property Casualty Insurance results:
*AIG Commercial Insurance continues to exhibit strong financial performance with 2008 second quarter operating income of nearly $1 billion, net written premiums of $5.99 billion and a profitable combined ratio of 93.7%.
*AIG Private Client Group’s year-to-date results: $87.3 million in operating income; $520 million in net written premium; combined ratio of 81.4%.
We remain committed to, and capable of, serving the needs of our policyholders. If you have any questions, please contact your local representative. Thank you for your continued support of AIG Private Client Group.
Copyright © 2008 American International Group, Inc. All rights reserved.
AIG Private Client Group, 70 Pine Street, 21st Floor, New York, NY 10270
Monday, September 22, 2008
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