Following an initial “no comment,” unofficially we are hearing that AIG is reviewing an analyst's challenges to its reserve adequacy before responding. That's reasonable, but the company can't afford to leave buyers hanging too long before putting these concerns to rest in this crucial renewal season.
The last thing American International Group needs is any hint that reserves for its property and casualty insurance carriers might be inadequate.
Yet Todd Bault, an analyst with Sanford C. Bernstein, issued a report to his firm's clients suggesting that AIG has a whopping $11 billion reserve deficiency, mostly impacting a trio of long-tail lines–workers' compensation, general liability and professional liability. (See http://bit.ly/7WaCIH.)
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