AIG Responds to Article in the New York Times 06.12.09

An article in the June 12th edition of the New York Times raised questions about the handling of claims related to US Airways Flight 1549, which landed in the Hudson River on January 15, 2009. In response, AIG released the statement below:

US Airways’ policy with AIU Holdings is an aviation liability policy – it does not respond like an auto policy or general liability policy, which may include first party medical coverage. AIU Holdings’ obligation is to pay valid claims on behalf of US Airways as a result of its legal liability. No such liability has been established, and we continue to believe that US Airways was not responsible for the emergency that Flight 1549 experienced.

Nonetheless, we have paid all expenses for the passengers’ emergency care and we have reimbursed US Airways for its initial payment to the passengers for their immediate needs.  Also, we have offered the passengers additional sums of money in exchange for their release of any further claim against US Airways so that we might achieve closure for our policyholder. Given that US Airways is not responsible for this incident, we think such an offer is fair.


AIG Responds to the New York Post 06.03.09

The New York Post story alleging that AIG is trying to claw back money from charities is flat wrong.

AIG isn't trying to take anything from charities.

The story relates to AIG’s suit to recover from Starr International Co. (SICO) more than $4 billion in value that belongs to AIG shareholders and American taxpayers.  SICO was the compensation trust for AIG’s employees. Former AIG chairman and CEO Hank Greenberg personally and repeatedly promised that SICO’s AIG shares would always be used only for the purpose of compensating current and future AIG employees. Yet Greenberg took the shares when he left AIG amid accounting scandals that marked the beginning of AIG’s downfall. With the trial only days away, Greenberg is trying to convince the world that SICO is a charity. SICO certainly wasn’t a charity before this lawsuit began.  In fact, SICO only donated 0.005% of its worth. Only after AIG brought this action did SICO suddenly and cynically show charitable tendencies. AIG is asking the court to put those shares back into the hands of a reliable trustee who will put the shares to work for AIG and American taxpayers.

AIG Responds to CNBC 02.23.09

Today, CNBC reported that AIG is in discussions with the U.S. government to secure additional funds. In response, AIG issued the the following statement:
 
AIG has not yet reported 4th quarter and 2008 year-end results. We continue to work with the U.S. government to evaluate potential new alternatives for addressing AIG's financial challenges. We will provide a complete update when we report financial results in the near future.

AIG CEO Ed Liddy Meets with Congressional Leaders 01.15.09 *

Ed Liddy met with several Members of Congress in Washington D.C. to outline AIG's plan to move forward and repay the U.S. government. Among other meetings, Mr. Liddy had a good, cordial meeting with Representative Elijah Cummings, a frequent critic of AIG. Mr. Liddy answered Congressman Cummings' questions about AIG's retention plans, which are referenced in our most recent 10Q filing. These plans are not new, and Mr. Liddy clarified various details of those plans in answer to Congressman Cummings questions. AIG also noted that 2008 total compensation for the top 56 AIG executives is almost 40 percent lower than their 2007 total compensation, even when any retention payments are included.

Letter from Ed Liddy to Representative Cummings 12.17.08

AIG Chairman and CEO Edward Liddy sent the following letter to Representative Elijah Cummings postponing a meeting that had been scheduled for today. In light of new issues raised by Rep. Cummings and AIG’s desire to respond completely and accurately, a later meeting date has been requested. The letter also reiterates AIG’s strategy to preserve the value of its businesses so it can repay the government. Click here to read Mr. Liddy's letter.

Response to Bloomberg Story 12.17.08 * American International Group, Inc. (AIG) has issued the following statement regarding an article published today by Bloomberg :

"AIG reports all its derivatives at fair value in accordance with US GAAP including AIGFP’s credit derivative portfolios. In accordance with US GAAP, in its determination of fair value for its credit derivatives, AIG considers all available information including but not limited to market available data, dealer provided prices, prices used for collateral posting and recent trades including early terminations initiated by counterparties. In evaluating fair value for its Regulatory Capital portfolio, AIG also considers factors relating to the individual underlying portfolios including, but not limited to, asset type and seasoning, default history, loss history and attachment point.

"AIG has clearly described its valuation approach including key assumptions used for AIGFP’s super senior credit default swap portfolio in its Form 10-Q for the quarter ended September 30, 2008."

AIG Responds to the New York Post 12.12.08 *

AIG responded directly to Paul Tharp, a New York Post reporter who authored a December 12 article titled “AIG Bails on Loans From Feds.”

Today you write “Uncle Sam may not get paid back as promised in its $150 billion bailout of American International Group, the giant insurer conceded.”

This is simply not true and we would like a correction.  In fact, in the December 3 Wall Street Journal, AIG Chairman and CEO Edward Liddy was quoted as saying, “My goal is to pay back every single penny.”

What he did state in a speech in Hong Kong is this “Our strategy is to divest assets and become a more focused enterprise. Our focus in the future will be on our worldwide property casualty business with a continuing interest in our Asia life business.  These are challenging times to undertake divestitures and it’s quite possible that the pace or order of our divestitures will change. Nevertheless, I have made the very public commitment that we will pay down the entirety of the amounts we have borrowed from the U.S. taxpayers.”

Again, Edward Liddy stated publicly that he has committed to paying down the every penny that was borrowed.  He never, as you write, conceded that “Uncle Sam may not get paid back as promised.”

We would like a correction. Feel free to call me if you have further questions, or if you are looking to clarify any matters regarding AIG.

AIG Responds to Wall Street Journal Story 12.10.08 *

AIG CEO Ed Liddy Responds to Letter from Representative Cummings Regarding AIG's Retention Planning 12.05.08 *