Following an initial “no comment,” unofficially we are hearingthat AIG is reviewing an analyst's challenges to its reserveadequacy before responding. That's reasonable, but the companycan't afford to leave buyers hanging too long beforeputting these concerns to rest in this crucial renewal season.

The last thing American International Group needs is anyhint that reserves for its property and casualty insurance carriersmight be inadequate.

Yet Todd Bault, an analyst with Sanford C. Bernstein,issued a report to his firm's clients suggesting that AIG has awhopping $11 billion reserve deficiency, mostly impacting a trio oflong-tail lines–workers' compensation, general liability andprofessional liability. (See

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