The American Giant

Many emails flying around from management (looks like US is working overnight) regarding AIG’s downgrade from S&P ‘AA-‘ to ‘A-‘ and AHA’s (American Home Assurance Company) downgrade from S&P ‘AA+’ to ‘A+’.

The Beast also sent an email to us saying if any of the cancellation clauses in our policies are triggered ‘cos of the downgrade, the Beast is pleased to assist.  But… The Beast… being a Lloyds’ syndicate, is also rated S&P ‘A+’.  So… what makes them better than AHA?  Perhaps The Beast is banking on the fact that apart from its syndicate’s own financials, there is also a Lloyds central fund of (I think) USD 1b for any of the Lloyds’ syndicate to draw on in the event it runs into financial difficulties.  That said, if AIG chooses to sell any of its assets, say it’s aircraft leasing subsidiary… it can potentially gain USD 5b from the sale.   So you do the sums…

I feel bad about the hit AIG is taking now… especially since some of the nicer underwriters I’ve been working with are from AIG (2 very nice angmohs – one in Canada and one in HK).  Well, if I had cash, I would invest in AIG stocks now.  Anyone can lend me some $$?

0 Responses to “The American Giant”


  1. No Comments

Leave a Reply




September 2008
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  

Archives