American International Group Inc. has filed its first, and possibly its last, publicly disclosed Form Y-9C with the Federal Reserve, and SNL Financial has issued a report by Zuhaib Gull analyzing the information.
AIG, the third largest publicly traded insurance underwriter in the U.S. by assets, was required to file the Y-9C because it controls an insured depository institution, AIG Federal Savings Bank, and is deemed a savings and loan holding company. Although AIG has controlled the AIG Federal Savings Bank since it established the banking unit in 2000, the bank was regulated by the federal Office of Thrift Supervision (“OTS”) for much of that time, and the OTS did not require publicly disclosed consolidated filings from the holding companies it regulated.
The OTS was dissolved by the Dodd-Frank Act and AIG reached an agreement with its new federal regulators to permit the Y-9C it filed for the second quarter of 2013 to be released to the public.
After examining AIG's second quarter Y-9C, SNL Financial found that:
- AIG was holdings $3.43 billion of structured financial products supported by corporate and similar loans;
- AIG was holding noninsured commercial mortgage backed securities valued at $9.11 billion;
- AIG was holding nonagency residential mortgage backed securities valued at $28.20 billion;
- The second quarter deposit balance in AIG's savings bank was $755 million, down from $819.1 million a quarter earlier;
- AIG's savings bank's assets of $878.4 million accounted for 0.17 percent of the holding company's assets;
- AIG reported total insurance assets of $451.88 billion, defined as property and casualty and life and health lines of businesses, both insurance underwriting and reinsurance underwriting; and
- AIG reported insurance income for the first six months of 2013 of $3.62 billion.
As SNL Financial pointed out, AIG is not the only insurance-focused company subject to holding company filings. Other insurance companies that also are Y-9C filers include Principal Financial Group Inc., Armed Forces Benefit Association, and United Services Automobile Association.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].