Register here to view the forum without ads

Insurance Agent Forum
Join our Facebook Fan Page  Join our LinkedIn Group of Insurance Agents  Follow Insurance Agents Forum on Twitter
Currently Online: 168
Members: 13,184
Discussions: 15,200
Messages: 199,339
Views: 7,986,417

Go Back   Insurance Agent Forum > Insurance Agents and Brokers Forum > General Insurance Agent Discussions

Health Choice One

Scroll down for a discussion on AIG Huge 2nd Qtr Loss - another 5 Billion within the General Insurance Agent Discussions.

AIG's involement in the Credit Default Swaps market is proving very costly... another 5 billion loss for Q2. Do they have ahold of the anchor ...


Reply to AIG Huge 2nd Qtr Loss - another 5 Billion
Old 08-07-2008, 03:53 AM   #1
Guru
 
SportsNut on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Apr 2008
Posts:1,454
State: SportsNut is an Insurance Agent from Indiana
AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top


AIG's involement in the Credit Default Swaps market is proving very costly... another 5 billion loss for Q2. Do they have ahold of the anchor that could drag them to the bottom...?

AM Best downgraded them on their last batch of qtrly news. Wonder what impact this latest news will have on their credit and other ratings...?

Essentially they have guarenteed these mtg portfolios to large lenders for a premium. Essentially wholesale mtg insurance. Their shares dropped 8% on the day, as a result.

How much more downside could there be...? How will this effect your present (and future) policy holders...? Something to think about.

AIG's huge 2Q loss shows credit market woes linger: Financial News - Yahoo! Finance
Choose Insurance Type

Enter Zip Code
SportsNut is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion

Register Now for FREE!
Are you an Insurance Agent Forum member yet? To sign up for your FREE INSTANT account, fill out the form below!

Username:     Password:   Confirm Password:     E-Mail:   Confirm E-Mail:

    Question of the day:   Two plus 5 is equal to Agree to forum rules 


Old 08-07-2008, 08:01 AM   #2
Guru
 
somarco on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Sep 2006
Posts:8,200
State: somarco is an Insurance Agent from Georgia
Re: AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top

Like all carriers, AIG reinsures their xs risk, they have reserves and most of their products are covered by state guaranty funds.

They are not the first carrier to be caught up in the real estate meltdown. Baldwin United, CNA, Equitable and Mutual Benefit all suffered due to real estate deals gone bad.

AIG is probably large enough to weather this storm. If not, they will be snatched up by a European conglomerate and move forward.

A dozen years ago or so very few in the US had heard of Fortis, ING or Axa.

European carriers are better managed and tend to take long term views, planning 30 years out. US carriers are more opportunistic and focused on short run moves.
------------------------------------
The doctor is in. Five cents please.
Atlanta Health Insurance
Affordable Dental Insurance
somarco is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion
Old 08-07-2008, 02:00 PM   #3
Guru
 
padthaiforlunch on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Sep 2007
Posts:1,325
State: padthaiforlunch is an Insurance Agent from Colorado
Re: AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top

Originally Posted by somarco View Post
... If not, they will be snatched up by a European conglomerate and move forward.
This.

If you look at the balance sheet, their debt-to-asset ratio is out of whack, and current assets continue to shrink. You have to wonder what their off-balance sheet items look like.
------------------------------------
http://failblog.wordpress.com/files/...ffiti-fail.png
padthaiforlunch is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion
Old 08-07-2008, 03:12 PM   #4
Guru
 
SportsNut on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Apr 2008
Posts:1,454
State: SportsNut is an Insurance Agent from Indiana
Re: AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top

Originally Posted by somarco View Post
Like all carriers, AIG reinsures their xs risk, they have reserves and most of their products are covered by state guaranty funds.

They are not the first carrier to be caught up in the real estate meltdown. Baldwin United, CNA, Equitable and Mutual Benefit all suffered due to real estate deals gone bad.

AIG is probably large enough to weather this storm. If not, they will be snatched up by a European conglomerate and move forward.

A dozen years ago or so very few in the US had heard of Fortis, ING or Axa.

European carriers are better managed and tend to take long term views, planning 30 years out. US carriers are more opportunistic and focused on short run moves.

Ah, you mention a relic from the past... Baldwin... or known as Baldwin United. A conglomerate of 200 fincl services companies when it finally hit meltdown, at warp speed. Grown out of the Baldwin Piano Co., of all things.

Funny event occured back in the mid 80's. We were looking for office space as a Financial Planning firm. The agent was showing us Class A space... unlocking the door... and a fellow was coming out of the suite next door... I thought to myself, he looks quite familiar... It hit me who he was... Morley P. Thompson, former architect of the Baldwin United mess. I quietly told the agent that we would have to pass on the space as many folks in Cincinnati had exposure to B/U annuities and had gotten hurt. We could hardly be in an adjoining corridor where our front doors were next to one another...

Next.
SportsNut is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion
Old 08-07-2008, 03:46 PM   #5
Guru
 
Winter on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Dec 2006
Posts:4,662
State: Winter is an Insurance Agent from Kosova
Re: AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top

Originally Posted by somarco View Post

A dozen years ago or so very few in the US had heard of Fortis, ING or Axa.

European carriers are better managed and tend to take long term views, planning 30 years out. US carriers are more opportunistic and focused on short run moves.
Indeed. Aviva, Allianz etc. as well.

Winter
Winter is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion
Old 08-07-2008, 04:39 PM   #6
Super Genius
 
Bozack23 on AIG Huge 2nd Qtr Loss - another 5 Billion - Insurance Agent Forum
 
Join Date: Mar 2008
Posts:43
Re: AIG Huge 2nd Qtr Loss - another 5 Billion             Go to Top

How much should a newbie looking to join AGLA let this huge loss effect his decision. I would assume,at worst, the windows wouldn't get boarded up but another company would buy them. At that point not much would change at the office level?

Choose Insurance Type Enter Zip Code


Bozack23 is offline   Reply With Quote to AIG Huge 2nd Qtr Loss - another 5 Billion
Reply to AIG Huge 2nd Qtr Loss - another 5 Billion

  Insurance Forum > Insurance Agent Forum > Insurance Agents and Brokers Forum > General Insurance Agent Discussions



Thread Tools
Display Modes

Similar Threads with AIG Huge 2nd Qtr Loss - another 5 Billion
Thread Thread Starter Forum Replies Last Post
Huge thanks, and a newbie timmybright Getting Started Selling Insurance 10 11-21-2008 03:48 PM
A huge thank you to the moderators!!! Boxer3246 General Insurance Agent Discussions 3 12-06-2007 03:02 AM



All times are GMT -5. The time now is 08:55 AM.


Powered by vBulletin® Version 3.6.12 Secure
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.0