Rick6a

Rick6a

Well Known Member
Like many airplane owners, I am insured through AIG. I do have some concerns about the insurance giant's financial health given recent headlines.

I'd hate to think I could possibly lose the considerable premium investment I recently paid for and find myself high and dry without coverage if AIG goes belly up.

Are my concerns justified?
 
AIG Bankrupcy???

I for one think your concerns are justified. Unless AIG can get some additional capital soon ....
My AIG policy through Nationalir renewed just last week. I called Jenny Estes this morning and she hadn't heard anything from AIG but said she would look into it. I'll post any info I get back from her.

Albert Thomas
RV-8A QB
N880AT
wiring
 
AIG news

Latest AIG news tracked by Marketwatch: http://www.marketwatch.com/quotes/aig

Just guesses so far about what the restructuring will look like. But AIG has good balance sheets on many of its businesses and the Fed has indicated it will loan on that collateral. They might actually come through this.
 
AIG responds to concerns

Jenny Estes from Nationair sent me the following statement from AIG:

AIG Commercial Insurance?s parent company is facing challenges related to the extraordinary
developments in the financial markets in the past few days. AIG, Inc. is actively developing
alternatives to improve liquidity to weather this difficult time for financial markets, and to maintain
its current credit ratings.
AIG?s challenges do not impact AIG Commercial Insurance?s capital position.
Here are a few more facts we think are important for you to know?
 The liquidity of AIG Commercial Insurance remains very strong.
 AIG Commercial Insurance?s substantial capital position is independent of its parent, and
cannot be used by the parent to satisfy its liquidity needs.
 Since 2005, AIG Commercial Insurance?s statutory surplus has increased by over 50% to
$26.7 billion.
 AIG Commercial Insurance?s ability to pay claims and its commitment to writing challenging
risks is undiminished.
 AIG Commercial Insurance continues to exhibit strong financial performance with 2008
second quarter operating income of nearly $1 billion, net written premiums of $5.99 billion and
a profitable combined ratio of 93.7%.
AIGCI will communicate developments as they arise, and we look forward to continuing to serve the risk
management needs of our customers and brokers.
Additionally, in the wake of Hurricane Ike this past weekend we want to remind affected
policyholders that we stand ready to help. To report a claim, please call 1-877-244-0304.
If you have any questions, please do not hesitate to contact an AIG Commercial Insurance representative.

Albert Thomas
N880AT
RV-8A QB
 
Warren Buffet will buy AIG and roll it over into GEICO :D

You guys better start being nice to me now, I can get you a deal on insurance in a few months. ;)
 
glider4 said:
AIG?s challenges do not impact AIG Commercial Insurance?s capital position.
Here are a few more facts we think are important for you to know?
 The liquidity of AIG Commercial Insurance remains very strong.
 AIG Commercial Insurance?s substantial capital position is independent of its parent, and cannot be used by the parent to satisfy its liquidity needs.
Click to expand...

From today's news:
"The New York State Insurance Department will allow AIG to access $20 billion of its subsidiaries' assets, which it can use as collateral for daily operations, said New York Gov. David Paterson. In exchange, the parent company will give the subsidiaries less-liquid assets."
 
Probably still OK...

MTBehnke said:
From today's news:
"The New York State Insurance Department will allow AIG to access $20 billion of its subsidiaries' assets, which it can use as collateral for daily operations, said New York Gov. David Paterson. In exchange, the parent company will give the subsidiaries less-liquid assets."
Click to expand...

There are alot of Subsidiaries around... the previous statement about the Commercial Insurance could be true...

Subsidiaries/Affiliates Covered By Hoover's Online

AIG American General Life Companies
AIG Annuity Insurance Company
AIG Europe (UK) Limited
AIG Financial Products Corp.
AIG Hawaii Insurance Company, Inc.
AIG Investments
Utilities, Inc.
AIG Retirement Services, Inc.
AIG SunAmerica Life Assurance Company
The Variable Annuity Life Insurance Company
Allied World Assurance Company Holdings, Ltd
American General Finance Corporation
American Life Insurance Company
Brazos Capital Management, L.P.
HSB Group, Inc.
International Lease Finance Corporation
Lexington Insurance Company
SunAmerica Ventures, Inc.
AIG Financial Advisors, Inc.
Transatlantic Holdings, Inc.
Transatlantic Re (Brasil) Ltda.
Transatlantic Reinsurance Company
United Guaranty Corporation
Family Tree
 
NorthWest Insurance

My AIG policy on my RV-8 runs up on Friday. Jenny at NationAir gave me a good quote to continue, it has gone up exactly $1 in three years! But, I noticed an exclusion if I fly in FAA waivered airspace. When I asked about IAC competions they asked for a sample of the FAA waiver that we are required to sign to fly in the box. I was told they would cover it for an additional $250. This was a little lower than the quote that I had recieved from Northwest, the IAC insurance partner. AIG then clarified that it would be $250 per contest! I had decided to go with the IAC plan and AIG's trouble solidified the decision forf me even though Jenny pointed out that the insurance group was doing jsut fine (at least until the Ike claims start coming in).

So, I'm paying a bit more but I am getting coverage that I want. The IAC plan also offers $1mill smooth liability which AIG never offered. Something you may want/need/consider worth the extra money.

Also, those of you who fly the large formations at OSH and SNF, check your coverge! If you are in waivered airspace (I believe you are) then you are not covered by AIG unless you have made arrangements with them!

Good luck, fly safe.

Scott A. Jordan
N733JJ
750 hrs
 
AIG stock tanks

Not looking good for AIG this morning. Stock was at $19+/share last Wednesday (9/10). Currently it's trading at $1.73/share. The parent company got permission to "borrow" the assets of their subsidiaries so the response I posted from AIG Commercial Insurance yesterday is no longer valid.
I have only 361 days left on my current policy with them! I may need to go to plan B. Now I just have to figure out what the heck plan B is.....

Albert Thomas
N880AT
RV-8A QB
Wiring.......
 
Though AIG is an insurance company -- its products include auto and life insurance -- the root of its problems lies in the same mortgage crisis that wreaked havoc on the health of investment banks Bear Stearns, which shut down last spring, and Lehman Brothers, which filed for bankruptcy protection this week.

While Bear Stearns and Lehman invested in mortgages, AIG sold insurance contracts -- known as credit default swaps -- to investors to protect them from losses stemming from mortgages that fell into default. With home after home going into foreclosure and the mortgage meltdown in full swing, AIG has had to make good on its insurance guarantees.
 
subsidiaries

AIG typically issues its policies through one of its many subsidiaries. Those subs are probably not going to be affected by this crisis (most retain a high rating today), so you probably don't have to worry about your coverage. I'm not planning to move my coverage.
 
I was told on the phone today by a USAA insurance rep that AIG Financial is the one that's in big trouble, but AIG Insurance is not beholden to them, so they are "safe" but the insurance folks "are still watching closely."
 
This came to-day...

...from the Insurance Agent that arranges insurance for the Grumman Group (the AYA)

Gang - we are updating you on the current situation at AIG. AIG has informed us of the following:


1) The problems are with the AIG holding company, not the individual insurance company subsidiaries with which you do business.
2) The capital position of AIG Commerical Insurance (which includes aviation) has not diminished as a resut of its parent's financial position. The varous insurance companies which make up AIG Commercial Insurance are well-capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.


FYI:


As has happened with other insurance holding companies which filed bankruptcy, the subsidiaries usually continue to operate normally with no disruption in claims payments.


In the worst case scenario, if an insurance company becomes insolvent, the state insurance regulator will take over and pay claims. It is required that most insurance companies contribute in every state to guarantee funds should such an event occur. These funds would pay claims and reiumburse policy holders for the unused portions of their policies. All the companies with which we write policies contribute to these funds.


Should you change to another insurance company? AIG's ratings are still considered investment grade and the company's insurance subsidiaries are considered to be secure. If AIG were to become insolvent, policy holders would have to be mailed notice of such so that they could obtain insurance elsewhere. We have not received any notification of such an occurrence.


As we get more information from AIG, we will update you immediately.


Thank you,
Norris Hibbler
Your AYA Insurance Director
 
AIG Update

AIG, States Assure Insurance Policyholders Their Claims Will be Paid
September 16, 2008

State insurance regulators are reassuring policyholders of troubled American International Group that AIG's insurance operations are solvent and the company can pay its claims.




AIG also issued a statement that its insurance subsidiaries are fully capable of meeting policyholder obligations in the U.S. and around the globe.

"We have a very strong message for consumers: If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims. Our job is to ensure that they continue to have the ability to pay," said National Association of Insurance Commissioners (NAIC) President and Kansas Insurance Commissioner Sandy Praeger on behalf of state insurance regulators.

Praeger said that AIG's insurance subsidiaries are being asked to provide liquid assets to the financially distressed non-insurance parent company in exchange for non-liquid assets. The New York State and Pennsylvania Insurance Departments are working with AIG to review the transaction.

"State insurance regulators will only approve this type of action if they are assured it is part of a total resolution of the liquidity issue at the parent company and fairly compensates its insurance company subsidiaries," she said.

As a holding company, AIG is a federally regulated legal entity that is distinct from its subsidiary insurers. The subsidiary insurers are governed by state laws.

"The No. 1 job of state insurance regulators is to make sure insurance companies operate on a financially sound basis. If needed, we would immediately step in if it appears that an insurer will be unable to fulfill the promises made to its policyholders. This includes taking over the management of an insurer through a conservation or rehabilitation order, the goal being to get the insurer back into a strong solvency position," Praeger said.

She added that in the "unlikely event" that assets are not enough to cover claims, there is still another safety net in place to protect consumers: state guaranty funds. If an insurance company becomes unable to pay claims, these guaranty funds that are in every state will provide coverage, subject to certain limits.

Late Tuesday, AIG issued its own statement to policyholders maintaining that its life insurance, general insurance and retirement services businesses, including its extensive Asian operations, "continue to operate normally and remain adequately capitalized
and fully capable of meeting their obligations to policyholders."

AIG said it continues to pursue alternatives to increase short-term liquidity in the parent company. Those plans do not include any effort to reduce the capital of any of its subsidiaries or to tap into Asian operations for liquidity, the statement continued.

The insurance policies written by AIG companies are direct obligations of its regulated subsidiary insurance companies around the world. According to AIG, these companies are "well capitalized and meet or exceed local regulatory capital requirements."


Source: NAIC
www.naic.org

AIG
www.aig.com


Jenny Estes
NationAir Aviation Insurance
877-475-5860
[email protected]
 
AIG Address's policy holders concerns

AIG ISSUES STATEMENT TO ADDRESS POLICYHOLDER CONCERNS
NEW YORK, September 16, 2008 - American International Group, Inc. (AIG) today said that AIG?s life insurance, general insurance and retirement services businesses, including its extensive Asian operations, continue to operate normally and remain adequately capitalized and fully capable of meeting their obligations to policyholders.
AIG continues to pursue alternatives to increase short-term liquidity in the parent company. Those plans do not include any effort to reduce the capital of any of its subsidiaries or to tap into Asian operations for liquidity.
The insurance policies written by AIG companies are direct obligations of its regulated subsidiary insurance companies around the world. These companies are well capitalized and meet or exceed local regulatory capital requirements. The companies continue to operate in the normal course to meet obligations to policyholders. In particular, AIG noted its long tradition of service in Asian markets, which are key to AIG?s future growth. Founded in Shanghai in 1919, Asia is home to some of AIG?s oldest and most valued clients.
The AIG companies are fully committed to maintaining required capital levels in all of its subsidiaries and to meeting the needs of their customers around the world.
# # #
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
# # #

Jenny Estes
NationAir Aviation Insurance
 
AIG Update

? Last night, AIG?s Board of Directors approved a transaction with the Federal Reserve Bank of New York to
provide a 24-month liquidity facility to AIG in the amount of $85 billion. Access to this facility will allow the parent
company, AIG, to address its immediate liquidity needs, which is clearly a positive development for
policyholders, brokers, employees and shareholders.
? In connection with this transaction, the Federal government will receive a 79.9 percent equity interest in AIG.
? In addition, AIG Chairman and Chief Executive Officer, Robert Willumstad, has resigned his position with AIG.
Edward M. Liddy, former Chairman of the Allstate Corporation, has been named AIG?s new Chief Executive
Officer.
? Although the New York and Pennsylvania insurance departments were prepared to allow AIG to exchange
certain liquid investment holdings of the insurance companies for high-valued, less liquid holdings of the parent
company, this transaction was not necessary. The regulators? consideration of this option demonstrates their
confidence in the financial strength of AIGCI?s subsidiaries.
? The Federal government?s willingness to act highlights AIG?s critical role in the global financial markets.
Here are some additional facts that you should know:
? It is important to remember that AIGCI?s subsidiaries, including Lexington, National Union and American Home,
continue to be well capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.
? AIGCI has ample resources to pay policyholder claims, paying $73 million in claims every single day.
? AIGCI?s statutory surplus has grown over 50% since 2005 to $26.7 billion, exceeding the total shareholders?
equity of all domestic commercial insurance holding companies.
? AIGCI?s Net Written Premium to Surplus Ratio, a key indicator of the amount of leverage of a property casualty
organization is <1.0 with total NWP of $12.7 billion compared to policyholder surplus of $26.7 billion at the period
ending June 30, 2008.
? AIGCI?s financial strength ratings are excellent and higher than many commercial insurance companies.
If you have any questions, please do not hesitate to contact an AIG Commercial Insurance representative.

AIG Commercial Insurance companies include: AIG Casualty Company, American Home Assurance Company,
American International South Insurance Company, Commerce and Industry Insurance Company, Granite State
Insurance Company, Illinois National Insurance Co., National Union Fire Insurance Company of Pittsburgh, Pa., New
Hampshire Insurance Company, The Insurance Company of the State of Pennsylvania, AIG Excess Liability
Insurance Company Ltd., American International Specialty Lines Insurance Company, Landmark Insurance
Company and Lexington Insurance Company.

AIG Commercial Insurance is the marketing name for the domestic commercial property casualty insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com. All products are written by insurance company subsidiaries of AIG
Commercial Insurance Group, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance
products and services may be provided by independent third parties.
175 Water Street
New York, NY 10038
www.aig.com

Jenny Estes
NationAir Aviation Insurance
 
There are other options, too

Global Aerospace has been a compeditive player for RV owners for a long time. They work through an EAA program, and require you to be an EAA member in order to quote you. I deal with them all the time and was an underwriter there for some time.

US Specialty also quotes RVs. Weve been trying to get them in line with pricing for some time. They've been a little high.

AIG was high, too until the last year or so.

Until I see where AIG is heading, I am probably not marketing new RV owners - or owners of anything else - with AIG. Happy to help anyone that needs it. Global is probably where the RV-9 is going shortly.

PM or email me if I can be of any help.
 
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