Edward Liddy, the new chief executive of American International Group Inc., assured insurance commissioners attending an NAIC meeting at National Harbor, Md., near Washington, D.C., that AIG’s insurance units are sound. Liddy spoke at a closed briefing September 23 during the NAIC sessions. Liddy said in an interview after the briefing that the AIG insurance units are “absolutely safe and extremely well capitalized.” An asset sale plan is in the works, and AIG will make the plan public “as soon as we can,” Liddy said.

NAIC President Sandy Praeger said in an interview after the briefing that the briefing had given her the assurance that the AIG insurance units are safe. Pennsylvania Insurance Commissioner Joel Ario said the balance sheets of AIG’s insurance units have not changed. “It is a victory for state insurance regulation, because the strength of those operations had given federal officials the confidence that a solution should be developed for the company,” Ario said.

New AIG Chief Briefs Commissioners (National Underwriter 9/23/08)

September 26, 2008