We are now owners of AIG...congrats! - GoFuckYourself.com

TheSenator · 02-27-2009, 08:02 AM

The Americans are gonna own AIG.

http://www.bloomberg.com/apps/news?p...Xj8&refer=news

By Hugh Son and Andrew Frye

Feb. 26 (Bloomberg) -- American International Group Inc. may hand its faltering business insuring corporate clients to the government, shedding the division that was previously intended to be the core of the firm after a U.S. rescue, a person familiar with the situation said.

AIG told the government that the business has struggled to attract customers as employees quit to work for competitors, said the person, who declined to be named because the discussions are private. Turning the division over to the U.S. could retire some of AIG?s debt and protect the operation from losses at other parts of the company, the person said.

Deteriorating results from the business that includes commercial property and workers? compensation coverage threaten Chief Executive Officer Edward Liddy?s plans to salvage the insurer. Employees were stung by a 99 percent stock drop in 12 months, and potential customers shied away after more than $40 billion in net losses companywide prompted them to question AIG?s claims-paying ability.

?The stock price tells me they?re going away,? said Andrew Rothstein, an analyst at HGK Asset Management Inc., speaking about the company that was once the world?s largest insurer. ?That turns into a downward spiral. They lose talent, which begets a lower stock price, which begets losing more talent.? HGK?s large-cap fund owns stock in AIG competitors Travelers Cos. and Allstate Corp.

Bailout Balloons

AIG shares gained 6 cents, or 13 percent, to 52 cents at 4:15 p.m. in New York Stock Exchange composite trading. The stock was the worst performer in the Standard & Poor?s 500 Index last year and has declined since 86 percent since the government rescue on Sept. 16.

The U.S. bailout, which ballooned to about $150 billion in five months, may increase further with a government backstop to protect AIG against further losses on credit-default swaps, a person familiar with the matter said earlier today. This week, people familiar with the matter said AIG is preparing to disclose a record fourth-quarter loss of about $60 billion.

Giving the property-casualty unit to the government is among options being discussed by AIG and regulators, the person said today. The U.S. could keep the assets until it?s possible to sell them or hold initial public offerings. AIG may also hand over life insurance businesses that operate outside the country, people familiar with the situation said earlier this week. Michelle Smith, a spokeswoman for the Federal Reserve, had no comment. AIG?s Joseph Norton declined to comment.

Policyholder Concerns

A government takeover of the insurance business would probably boost client confidence and help improve sales, said Bob Hunter, a former industry regulator in Texas and currently director of insurance for the Consumer Federation of America. ?If I was a policyholder I?d probably be relieved,? Hunter said in an interview today. ?If I?m looking to buy insurance I would be more apt to feel safe going to AIG? if the U.S. takes control.

A profitable property-casualty division was the centerpiece of Liddy?s strategy to revive AIG and woo private investors following the government?s initial $85 billion bailout in September. That plan stalled amid deepening losses on subprime investments and Liddy?s difficulty finding buyers for other units.

Zurich Financial Services AG withdrew an offer for the company?s U.S. auto unit, which AIG expected to generate about $2 billion, after the companies couldn?t agree on a price, a person familiar with the matter said today.

Natural Disasters

Liddy is scrambling to stem the tide of defections as hurricanes and price competition handed the U.S. property and casualty industry its worst 9-month results since 2001, according to Insurance Services Office Inc.

Brokers, which help corporate clients shop for coverage, have been presenting insurance buyers with more options when policies came up for their annual renewal. Aon Corp., the biggest broker, said in October that it started selling additional coverage to protect against insurer default. No. 2 Marsh & McLennan Cos. said last month that most buyers are seeking to spread their risks to more carriers.

At Travelers, now the biggest U.S. insurer by market value, customers are renewing contracts at a record rate as its rivals? creditworthiness deteriorates, Chief Executive Officer Jay Fishman said at a conference yesterday in New York.

Snake Doctor · 02-27-2009, 10:04 AM

We already owned 79.9% of AIG. How much do you need to be considered the "owner"?

tranza · 02-27-2009, 10:21 AM

Anyway, congrats.

UFGators2007 · 02-27-2009, 10:23 AM

Hooray! That is just spectacular!

PersianKitty · 02-27-2009, 10:26 AM

Used to have a hefty life insurance policy through them.

notime · 02-27-2009, 01:59 PM

AIG owns 3% or 4% in an adult company whos on the stock exchange.

aniloscash · 02-27-2009, 05:14 PM

hopefully it ends up being a good investment

PurrrsianPussyKat · 02-27-2009, 05:16 PM

When do my dividends start rolling in?

PornMD · 02-27-2009, 05:18 PM

We overpaid.

$5 submissions · 02-27-2009, 05:18 PM

CDS-induced ultimate bankruptcy and resulting bailout/stimulus fed hyperinflation and global meltdown FTW

onwebcam · 02-27-2009, 05:44 PM

What I've always wanted. A insurance policy that I pay for for the remainder of my life, my kids will pay for for the remainder of their lives, and their kids. Maybe in a few hundred years someone will reap the rewards of centuries of labor. I think I'll pass.

notime · 02-27-2009, 06:15 PM

Quote:

Originally Posted by onwebcam

What I've always wanted. A insurance policy that I pay for for the remainder of my life, my kids will pay for for the remainder of their lives, and their kids. Maybe in a few hundred years someone will reap the rewards of centuries of labor. I think I'll pass.

You know a lot about politics. We all need sceptical people in governments to balance things out.
Maybe there lies your future ? DC ?

Penthouse Tony · 02-27-2009, 06:29 PM

Quote:

Originally Posted by PornMD

We overpaid.

I was just about to pop the champagne.

02-27-2009, 08:02 AM	#1
TheSenator Too lazy to set a custom title Industry Role: Join Date: Feb 2003 Location: NJ Posts: 13,335	We are now owners of AIG...congrats! The Americans are gonna own AIG. http://www.bloomberg.com/apps/news?p...Xj8&refer=news By Hugh Son and Andrew Frye Feb. 26 (Bloomberg) -- American International Group Inc. may hand its faltering business insuring corporate clients to the government, shedding the division that was previously intended to be the core of the firm after a U.S. rescue, a person familiar with the situation said. AIG told the government that the business has struggled to attract customers as employees quit to work for competitors, said the person, who declined to be named because the discussions are private. Turning the division over to the U.S. could retire some of AIG?s debt and protect the operation from losses at other parts of the company, the person said. Deteriorating results from the business that includes commercial property and workers? compensation coverage threaten Chief Executive Officer Edward Liddy?s plans to salvage the insurer. Employees were stung by a 99 percent stock drop in 12 months, and potential customers shied away after more than $40 billion in net losses companywide prompted them to question AIG?s claims-paying ability. ?The stock price tells me they?re going away,? said Andrew Rothstein, an analyst at HGK Asset Management Inc., speaking about the company that was once the world?s largest insurer. ?That turns into a downward spiral. They lose talent, which begets a lower stock price, which begets losing more talent.? HGK?s large-cap fund owns stock in AIG competitors Travelers Cos. and Allstate Corp. Bailout Balloons AIG shares gained 6 cents, or 13 percent, to 52 cents at 4:15 p.m. in New York Stock Exchange composite trading. The stock was the worst performer in the Standard & Poor?s 500 Index last year and has declined since 86 percent since the government rescue on Sept. 16. The U.S. bailout, which ballooned to about $150 billion in five months, may increase further with a government backstop to protect AIG against further losses on credit-default swaps, a person familiar with the matter said earlier today. This week, people familiar with the matter said AIG is preparing to disclose a record fourth-quarter loss of about $60 billion. Giving the property-casualty unit to the government is among options being discussed by AIG and regulators, the person said today. The U.S. could keep the assets until it?s possible to sell them or hold initial public offerings. AIG may also hand over life insurance businesses that operate outside the country, people familiar with the situation said earlier this week. Michelle Smith, a spokeswoman for the Federal Reserve, had no comment. AIG?s Joseph Norton declined to comment. Policyholder Concerns A government takeover of the insurance business would probably boost client confidence and help improve sales, said Bob Hunter, a former industry regulator in Texas and currently director of insurance for the Consumer Federation of America. ?If I was a policyholder I?d probably be relieved,? Hunter said in an interview today. ?If I?m looking to buy insurance I would be more apt to feel safe going to AIG? if the U.S. takes control. A profitable property-casualty division was the centerpiece of Liddy?s strategy to revive AIG and woo private investors following the government?s initial $85 billion bailout in September. That plan stalled amid deepening losses on subprime investments and Liddy?s difficulty finding buyers for other units. Zurich Financial Services AG withdrew an offer for the company?s U.S. auto unit, which AIG expected to generate about $2 billion, after the companies couldn?t agree on a price, a person familiar with the matter said today. Natural Disasters Liddy is scrambling to stem the tide of defections as hurricanes and price competition handed the U.S. property and casualty industry its worst 9-month results since 2001, according to Insurance Services Office Inc. Brokers, which help corporate clients shop for coverage, have been presenting insurance buyers with more options when policies came up for their annual renewal. Aon Corp., the biggest broker, said in October that it started selling additional coverage to protect against insurer default. No. 2 Marsh & McLennan Cos. said last month that most buyers are seeking to spread their risks to more carriers. At Travelers, now the biggest U.S. insurer by market value, customers are renewing contracts at a record rate as its rivals? creditworthiness deteriorates, Chief Executive Officer Jay Fishman said at a conference yesterday in New York. __________________ ISeekGirls.com since 2005

02-27-2009, 10:04 AM	#2
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	We already owned 79.9% of AIG. How much do you need to be considered the "owner"? __________________ sig too big

02-27-2009, 10:21 AM	#3
tranza ICQ: 197-556-237 Join Date: Jun 2003 Location: BRASIL !!! Posts: 57,559	Anyway, congrats. __________________ I'm just a newbie.

02-27-2009, 10:23 AM	#4
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02-27-2009, 10:26 AM	#5
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02-27-2009, 01:59 PM	#6
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02-27-2009, 05:14 PM	#7
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02-27-2009, 05:16 PM	#8
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02-27-2009, 05:18 PM	#9
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02-27-2009, 05:18 PM	#10
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02-27-2009, 05:44 PM	#11
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