AIG Provides Expanded $1 Billion Casualty Capacity for North American Rail Companies
October 09 2014 - 9:00AM
Business Wire
American International Group, Inc. (AIG) today announced that it
has expanded excess casualty liability limits for Class 1 railroads
in the U.S. and Canada to $1 billion per occurrence. This coverage
for catastrophe losses would be in excess of $1.5 billion in
underlying limits, and is one of the largest capacities offered to
the rail industry by a single insurer.
AIG is responding to the demands of North America’s largest rail
companies contending with record rail traffic and the growing
number of rail cars carrying potentially hazardous materials, such
as crude oil. The Association of American Railroads has reported
U.S. rail demand is at a 7-year high. The Association also reported
U.S. Class 1 railroads (including the U.S. Class 1 subsidiaries of
Canadian railroads) transported more than 407,000 carloads of crude
oil in 2013, up from 9,500 carloads in 2008, an increase of nearly
4,300%.
“These expanded limits are another way AIG’s scale and
innovation is meeting the needs of our critical infrastructure
clients and the customers they serve,” said Russ Johnston,
President, Casualty Americas. “The Class 1 railroads are seeing
strong growth and a resulting increase in risks they need to cover.
AIG is one of the few carriers that can provide customers the large
limits and risk expertise to meet this need.”
Derailments are the most common type of accident risk faced by
Class 1 railroads in the U.S. and Canada, and they can be caused by
a wide range of factors.
“Rail companies need additional coverage to help protect their
balance sheets,” said Jeremy Johnson, President & Chief
Executive Officer, Lexington Insurance Company. “This billion
dollar coverage will help Class 1 railroads address expanding risks
while continuing to serve the growing needs of transportation
customers in North America.”
The excess coverage is provided by Lexington Insurance Company
and other affiliated AIG Companies. Lexington is the largest
domestic excess and surplus lines carrier in the U.S.
American International Group, Inc. (AIG) is a leading
international insurance organization serving customers in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance and
retirement services in the United States. AIG common stock is
listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig |Twitter: @AIGInsurance | LinkedIn:
http://www.linkedin.com/company/aig |
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
Media:American International Group, Inc.Matt Gallagher,
212-458-3247matthew.gallagher2@aig.com
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