I think people are confusing AIG's different divisions. This site is about insurance. AIG's insurance companies have been and are doing just fine.
"The General Insurance combined ratio for the quarter was 96.9% (loss ratio of 70.4%) compared to 87.5% (loss ratio 64.1%) for the same three months last year.
At March 31, 2008, General Insurance net loss and loss adjustment reserves totaled $70.51 billion, a $1.22 billion increase from December 31, 2007."
Hey Ensure Pune, so far the insurance industry, including AIG is doing just fine in USA. Right now I don’t think that the global insurance consumers are required to worry about the companies going bankrupt.
However, its true that the overall profit scenario for the companies have worsen as compare to their performance last year, but so far the situation isn’t threatening. Hopefully, the financial aide that the market is receiving from the government would affect the economy positively.
The might go slow for couple of more months, but we Americans are attaching high hope with our new President. _________________ Register Now to have your Insurance queries solved.
I too have a good hope from Mr. Obama who is capable of handling these type of issues but if anyone identifies the reality of current finance & auto industry in US it is quiet obvious that one will have a questions like this.Sorry for hurting the sentiments. _________________ INSURANCE AT PUNE
Relax, the sentiments IMO are intact. Ensure, you have every right to panic, but so far after the AIG crisis no other insurance company has gone the same way. Moreover, AIG insurance is just doing fine like anyother insurance company in the market.
Its true that the period of crisis isn’t over yet and it may also cast a long term effect on the insurance economy, but the industry is weathering the crisis well till date. According to the experts the effects of the crisis may also differ depending upon the industry as well. and insurance companied directly involved in the mortgage and credit insurance is likely to face severe consequences than the other insurers.
AIG was heavily invested in credit default swaps, AKA, PRIVATE MORTGAGE INSURANCE.
With less than a 20% down payment the mortgage lenders require PRIVATE MORTGAGE INSURANCE to protect themselves from making the less the financially sound loans in the first place. If you default on your mortgage, the lender gets their money back paid by the insurance company.
Now, who do think IS and WAS on the hook for this type of mortgage collapse insurance? It was one of THE largest insurance companies who were underwriting these things, AIG.
Comparing AIG to "other" insurance companies that have absolutely nothing do with that type of market is ABSURD.
That being said, the topic of this thread was:
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Who is next after AIG?
Primerica, owned by Citigroup.
Buying term life insurance then investing the difference into loaded mutual fund that have now lost about 40% of their principal probably isn't the best business model going forward in my humble non-opinionated opinion. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
I too have a good hope from Mr. Obama who is capable of handling these type of issues but if anyone identifies the reality of current finance & auto industry in US it is quiet obvious that one will have a questions like this. Sorry for hurting the sentiments.
Mr. Obama is a poli-tic-ill neophyte who will be lead around Washington like a puppy dog on a short leash.
He's a good looking, well spoken man.
In the USA we don't elect the "best" talent we have to run our country. We elect people who look good in front of a television camera.
It's that simple.
Too much fiat money recklessly loaned out and NOT being paid back is the root cause of the current "so-called" financial crisis.
DEFLATION is a good thing IF you have cash. It's real bad if you operate your life or business on credit. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
I think people are confusing AIG's different divisions.
I KNOW they are...
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Mr. Obama is a poli-tic-ill neophyte who will be lead around Washington like a puppy dog on a short leash.
Kinda like George W, gary?
Quote:
We elect people who look good in front of a television camera.
You're right, and the guy is a great orator, no question there..
Far as I know all insurance company's invest their premium..some made really bad decisions...think progressive lost a billion or two (that's with a 'B')...in the fanny may, freddy mack or something like that mess...however all company's that I have read the reports on also are having an extreme down turn in the their claims as well..not enough to make up for horrible financial decisions however... they'll do that by laying off people _________________ **************************************
Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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