There has been a lot of information this week as respects AIG and its financial situation. It is important to note that the financial liquidity issue is at the holding company level and not with the Insurance subsidiaries which are all independent and individually regulated by each State.

In an effort to continue to provide you with the latest information, XS Brokers wants to share the linked articles for your review:
  • NAIC - addresses the role of the insurance commission and the nature of the firewall between AIG CI and its parent, as well as describes the $20b asset swap that was reported on Monday; however that transaction was never completed.
  • AIG has no plans.... - this is a Business Insurance interview with Kris Moor and John Doyle, in which it states that AIG CI is a core asset and will not be sold. Summary of press releases from various insurance commissioners
Our personal opinion is AIG will pull through this financial situation in the near future with asset sales on non insurance assets to repay their bridge loan from the Fed. We expect a more lean and focused AIG in the future.


The insurance businesses are currently rated "A" by A.M. Best. In addition, the parent company ratings were actually upgraded last week by S&P and Fitch. The major brokers have also articulated their positions that AIG remains a strong & healthy market.

We hope you find this information helpful as you discuss this situation with your clients. If you have any questions, please contact any one of our underwriting staff.

Thank you.

Adam W Devine • President
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XS Brokers Ins Agcy Inc • Quincy MA / Farmington CT
direct: 800.972.5381 x 119 | mobile: 617.797.4604  
email: adevine@xsbrokers.com
www.xsbrokers.com