AIG to Record $4.1B Fourth-Quarter Charge
NEW YORK (TheStreet) -- American International Group (AIG) said Wednesday it expects to record a fourth-quarter charge of $4.1 billion to boost loss reserves in its Chartis property and casualty insurance units.
AIG also said Wednesday it has reached an agreement with the U.S. Treasury Department allowing the insurer to retain $2 billion of the proceeds from the recent sale of AIG Star Life Insurance and AIG Edison Life Insurance.
The proceeds would be used to "support the capital of Chartis insurance subsidiaries in connection with the loss reserve strengthening. As a result, AIG expects that the Chartis insurance companies' statutory surplus will remain largely unaffected."
On Tuesday, it was reported that the Treasury Department's major offering of AIG's common stock may not occur until April or May, a month or two later than initially expected.
-- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel
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