Regulation/Legislation

The U.S. governments fiscal watchdog said today the federal government could ultimately make more than $15 billion from its investment in American International Group, an investment the government said was necessary to save AIG from insolvency.

The U.S. Treasury has agreed to cut its ownership stake in American International Group Inc to 63 percent by selling 163.9 million shares for approximately $5 billion, with the insurer agreeing to buy back about $2 billion worth.

The 2012 legislative developments keep unfolding in underwriting, claims and other areas.

Florida Gov. Rick Scott has signed what the insurance industry is calling the most significant auto insurance law in decades.

Three states are dropping out of the Nonadmitted Insurance Multistate Agreement tax-sharing compact, but Florida state officials say this will not interfere with the compacts implementation date.

Driven by profits in all core business unitsespecially its property and casualty insurance unitAmerican International Group Inc.s first-quarter net income climbed more than 147 percent.