The last thing American International Group needs during this crucial renewal season is any hint that reserves for its property and casualty insurance carriers might be inadequate.

Yet it is disturbing that AIG had an official “no comment” when first confronted with a report by Todd Bault, an analyst with Sanford C. Bernstein, suggesting the company has a whopping $11 billion reserve deficiency, mostly impacting a trio of long-tail lines–workers’ compensation, general liability and professional liability.

I’m sure risk managers and brokers doing business with AIG’s commercial insurance carriers–now flying under the Chartis brand–would sleep a lot better if reassured by the company’s highest officials that somehow Mr. Bault is mistaken in his conclusions, and that all is fine and dandy.

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