Life, Health, Home and Auto Insurance Provider – Improves its Credit Ratings - Aig Insurance Company ; American International Group (AIG) is one of the world’s largest insurance companies, providing life insurance, health insurance, home and auto insurance, investment plans and retirement solutions, rivaling other insurance companies like The Hartford, MetLife Insurance and Prudential.
Recently, AIG has been focusing on its recapitalization plans to repay the government a great chunk of the $182.5 billion bailout loan it received in September 2008, and according to the proposed plan, the United States Federal Bank of New York would redirect AIG’s TARP (Troubled Asset Relief Program) loan obligations toward the U.S. Treasury. In return, the Treasury will turn the $49.1 billion of preferred shares held with the government into about 1.7 billion shares of AIG common stock, at a discounted price.
The Treasury still holds about 92 percent of AIG’s common stock, which will be sold over time depending on the performance of the company’s shares in the market. In 2010 AIG’s stock price has surged more than 100 percent, and is currently trading at about $40-$41.
AIG’s property & casualty insurance division, branded as Chartis, consists of multiple line companies writing substantially all lines of property and casualty insurance, as well as various personal lines in the United States and abroad. However, during 2009 and 2010 AIG’s property 7 casualty market share was affected by a sharp decline in its credit ratings, and its market share declined from 8.2 percent in 2008 to 7.5 percent in 2009.
As part of its turnaround strategy, AIG has restructured itself and sold off the businesses that were not part of its core insurance business. The company’s credit shares and sales have improved, while net income written in the property & casualty segment rose by seven percent during the third quarter of 2010 compared to the same period the previous year.
1 comment:
Glad to know about this insurance company. I am impressed with the company overall structure and information that you have shared in your post. I am not much aware about the services and customer response about the policies that it offers, I would like to buy one and will decide after reading some more information.
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