If AIG Die PC operations, no problem, say the PCI and AIA

 

Monday, Apr 13,2009, 5:47:58 PM   Click:

WASHINGTON-Two-commercial property insurance have argued to Congress that American International Group is off the mark in saying that its failure would pose a "systemic risk" to the well-field of accident insurance.

"There is no reason to believe that consumers suffer significant or long-term adverse consequences in the case of all operations pc AIG left the market," the letter and accompanying PowerPoint presentation of the American Insurance Association and Property Casualty Insurers Association of America (PCI) has argued.

Presentations to management for financial services committees of Congress Wednesday were made in response to a document provided to the Treasury Department and Federal Reserve Board by AIG to justify an injection of additional funds to the company because he refers to a loss of $ 61.7 billion in March 2.

The letter was obtained by the National Underwriter late yesterday.

The documents were given to the majority and the minority staff of the Senate Banking Committee and House Financial Services Committee April 8 by agents of the AIA and PCI.

In particular, the letter accompanying the submission said, "If AIG PC companies have ceased their activities, there is capacity available, the existing competition and institutional preparedness as other industry members to meet the needs of public insurance. "

In addition, the letter added: "Our message is simple, traditional P & C does not currently pose a systemic risk, as other segments.

"We are competitive, well-capitalized and able to meet the insurance needs, as we demonstrated in the past, when a competitor leaves the size of the entire market," writes the group.

The Treasury and the Fed has used the document to review its policy on how to recover the funds, the government has made to AIG, a government to repay by selling his life on one of giving government participation in some of its operations as security for loans.

AIG in its justification for the extra help has argued that "AIG continues to pose a systemic risk" and requires immediate intervention of additional federal aid, or the failure of his cause "multiple and potentially catastrophic consequences of unpredictable .

The document stresses the outset that AIG systemic risk arises mainly from its subsidiary in financial products and, with respect to insurance, "the systemic risk is focused on life insurance business."

The number of victims groups said in the presentation April 8 that it recognizes that there are systemic problems May be in respect of non-AIG insurance operations and we are not talking on behalf of the industry of life insurance. "

NU Online News Service, April 10, 9:07 pm EDT

WASHINGTON-Two-commercial property insurance have argued to Congress that American International Group is off the mark in saying that its failure would pose a "systemic risk" to the well-field of accident insurance.

"There is no reason to believe that consumers suffer significant or long-term adverse consequences in the case of all operations pc AIG left the market," the letter and accompanying PowerPoint presentation of the American Insurance Association and Property Casualty Insurers Association of America (PCI) has argued.

Presentations to management for financial services committees of Congress Wednesday were made in response to a document provided to the Treasury Department and Federal Reserve Board by AIG to justify an injection of additional funds to the company because he refers to a loss of $ 61.7 billion in March 2.

The letter was obtained by the National Underwriter late yesterday.

The documents were given to the majority and the minority staff of the Senate Banking Committee and House Financial Services Committee April 8 by agents of the AIA and PCI.

In particular, the letter accompanying the submission said, "If AIG PC companies have ceased their activities, there is capacity available, the existing competition and institutional preparedness as other industry members to meet the needs of public insurance. "

In addition, the letter added: "Our message is simple, traditional P & C does not currently pose a systemic risk, as other segments.

"We are competitive, well-capitalized and able to meet the insurance needs, as we demonstrated in the past, when a competitor leaves the size of the entire market," writes the group.

The Treasury and the Fed has used the document to review its policy on how to recover the funds, the government has made to AIG, a government to repay by selling his life on one of giving government participation in some of its operations as security for loans.

AIG in its justification for the extra help has argued that "AIG continues to pose a systemic risk" and requires immediate intervention of additional federal aid, or the failure of his cause "multiple and potentially catastrophic consequences of unpredictable .

The document stresses the outset that AIG systemic risk arises mainly from its subsidiary in financial products and, with respect to insurance, "the systemic risk is focused on life insurance business."

The number of victims groups said in the presentation April 8 that it recognizes that there are systemic problems May be in respect of non-AIG insurance operations and we are not talking on behalf of the industry of life insurance. "