by John Darer CLU ChFC CSSC
You may have read reports that American International Group, Inc. (AIG) will be downsizing by selling off some of its many companies. Despite the anticipated sell off one AIG core component, AIG Commercial Insurance, is expected to remain sizable
To put things in perspective Its worldwide property and casualty businesses generated $40 billion in revenues in 2007, which would rank it 59th on the Fortune 500 and still ahead of all of all of its primary commercial property casualty competitors. The surplus behind its domestic commercial lines business alone exceeds $26 billion, which is a 51 percent increase from the level it was at just two and one-half years ago; at the end of 2005 it was $17.7 billion.
Today's Insurance Journal contains an interview with John Q. Doyle, president and CEO of AIG Commercial Insurance. Among the points in the interview:
- The agreement with the Fed was drafted with the intention of letting the insurance companies operate as usual.
- The $20B asset swap with insurance subsidiaries (approved by the New York insurance Superintendent in the days before the $85B bailout), a transaction which has been misunderstood dearly, was NEVER consummated, because once the Fed facility was put in place, there was no need to execute the transaction.
- AIG Commercial Insurance will still be a very large commercial property casualty company that's very well positioned to serve clients' global needs
- The company pays $73 million in claims every day!
- The company offers over 400 products and services and wrote alot of new business in September 2008.
Whuch Companies Are Part of AIG Commercial Insurance?
AIG Commercial Insurance companies, to name just some, include AIG Casualty, American Home Assurance Company**, Commerce and Industry, Granite State, Illinois National, National Union Fire Insurance Company of Pittsburgh, PA**, New Hampshire Insurance, The Insurance Company of the State of Pennsylvania, AIG Excess Liability Insurance, American International Specialty Lines Insurance, Lexington Insurance AIG Excess Liability Insurance International
** American Home Assurance Company and National Union Fire Insurance Company of Pittsburgh, PA were used as qualified assignment companies for structured settlements on New York State cases where the annuity issuer is American International Life Assurance Company of New York.
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