NU Online News Service, Nov. 30, 4:00 p.m.EST

An analyst's report sent American International Group's stocktumbling downward today as the analyst said the company will havean $11 billion reserve deficiency by the end of this year.

Earlier today, CNBC's David Faber said a report issued by ToddBault, an analyst with Sanford C. Bernstein, found that AIG wouldsuffer an $11 billion reserve deficiency primarily in three linesof long-tail business--workers' compensation, general liability andprofessional liability.

Mr. Faber said Mr. Bault's report came out of an overallevaluation of the non-life insurance industry reserve adequacy whenit came across the surprising result.

The report said the finding was "totally unexpected," accordingto Mr. Faber, and that if its analysis is correct, AIG will befaced with taking a reserve charge, which could lead to additionalactions by the U.S. government. The U.S. government is the primarystakeholder since the company's bailout in the face of its economicdifficulties.

The report went on to say that such a deficiency could open thedoors to AIG's competitors (mentioned as ACE, Travelers and CNA),which would seek to exploit the company's diminished financialposition, Mr. Faber said.

By mid-afternoon trading, AIG's stock had plummeted more than 14percent to $28.49. The stock closed down 14.71 percent, or $4.90 ashare, to $28.40.

An AIG spokesperson said the company was not commenting on thereport.

This story was updated at 4:35 p.m. EST