AIG’s insurance business seen to be shaken and stirred by recession
Insurance giant American International Group has a shortfall of $11.9 billion in its property and casualty insurance business, an independent report says. AIG was among the biggest recipients of US government funds (actually, taxpayers’ money) in 2008, having taken some $120 billion in aid. Now analysts are not so sure the ailing firm’s troubles can all be traced to its derivatives portfolio, meaning they suspect its insurance operations are rickety too. Other research has raised doubts about AIG’s total worth since it was bailed out, and even the US government is worried the company might struggle to repay all the money. It looks like the casualty insurance business, which is intended to become the core of the company’s operations, is itself in need of a lifeline. Read more: The New York Times
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