News about American International Group broke fast and furiously last week, with questions raised about its reserve adequacy, deals closed to reduce its debt to the government by $25 billion, and an announcement that the company had buried the hatchet with its former chief executive, Maurice Greenberg.
An analyst's report concluding that the company will have an $11 billion reserve deficiency by the end of this year sent AIG's stock tumbling downward on Nov. 30.
Todd Bault, an analyst with Sanford C. Bernstein, reportedly found that AIG would come up short on reserves primarily for three lines of long-tail business–workers' compensation, general liability and professional liability.
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