AIG Strengthens Loss Reserves in Its Non-Life Bus. by $3.6 Billion Pre-Tax, Representing Six Percent of AIG’s Total Non-Lif...
January 26 2016 - 7:00AM
Business Wire
American International Group, Inc. (AIG) announced today that it
has completed its fourth quarter Non-Life loss reserve analyses and
has strengthened reserves by $3.6 billion pre-tax in the fourth
quarter of 2015. Accident years 2004 and prior represent $1.3
billion. The remaining $2.3 billion results in an increase just
under 0.7 points on average for the 2005 through 2014 accident year
loss ratios.
Each quarter, AIG conducts a series of actuarial reviews to
reassess the reasonableness of its carried reserves. These reviews
are conducted for each class of business, and consist of hundreds
of individual analyses. AIG considers data and information arising
since the prior review and adjusts, as appropriate, the methods and
assumptions used in the latest actuarial reviews.
This strengthening of loss reserves primarily reflects adverse
development on prior accident years in long-tail classes of
business. Three classes comprise approximately 90% of the total
charge; U.S. & Canada casualty ($2.2B), U.S. & Canada
financial lines ($0.6B), and runoff lines ($0.5B).
AIG has contributed capital to maintain statutory surplus within
target levels of financial strength for the non-life insurance
subsidiaries.
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are not historical facts but
instead represent only AIG’s belief regarding future events, many
of which, by their nature, are inherently uncertain and outside
AIG’s control. Except for AIG’s ongoing obligation to disclose
material information as required by federal securities laws, AIG is
not under any obligation (and expressly disclaims any obligation)
to update or alter any forward-looking statements, whether written
or oral, that may be made from time to time, whether as a result of
new information, future events or otherwise. Factors that could
cause AIG’s actual results to differ, possibly materially, from any
forward-looking statements include completion of the year end audit
process and the factors set forth in AIG’s filings with
the United States Securities and Exchange Commission.
American International Group, Inc. (AIG) is a leading global
insurance organization serving customers in more than 100 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160126005469/en/
American International Group, Inc.InvestorsLiz Werner,
212-770-7074elizabeth.werner@aig.comorMediaJennifer Hendricks
Sullivan, 212-770-3141jennifer.sullivan@aig.com
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