This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wall Street Whispers: AIG Pricing Critics Persist

Weedin indicates that even in the P&C market for large, corporate clients, insurers are picking their battles. If there's no competition, he estimates that rates could up 5% higher for renewals. If there's some competition but an established relationship between insurer and client, Weedin thinks rates "could go up a little bit," but not by much. If there's heavy competition for a key client, though, prices will go down and terms will get better.

"With those large, corporate clients, everyone is given good customer service because nobody wants to lose that business," says Weedin. "So, all things being equal, what's the differentiator? As of right now, it's price."

Therein lies the challenge for AIG and its competitors in the months ahead: With everyone chasing the same clients, it will be a challenge to stay on top without looking weak. Indications that AIG is desperate could once again raise questions about its viability and spook the very clients it's trying to capture and retain.

"The No. 1 thing that insurance companies are looking at is, they need to make acquisitions," says Weedin. "They need to get new clients in. They are being very aggressive - whether it's AIG, whether it's Firemans Fund, whether it's Travelers (TRV - Get Report). Insurance companies are being very aggressive - if they like the risk."

-- Written by Lauren Tara LaCapra in New York.

>To contact the writer of this article, click here: Lauren Tara LaCapra.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ACE $110.05 -1.00%
AIG $57.21 -0.52%
CB $100.70 -0.30%
TRV $104.84 -1.20%
AAPL $127.41 -0.15%


DOW 18,047.18 +12.25 0.07%
S&P 500 2,106.99 +6.59 0.31%
NASDAQ 5,022.8560 +28.2540 0.57%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs