PDA

View Full Version : AIG and E&O??



Scott Patterson
09-15-2008, 04:24 PM
With the news about AIG possibly going under I started to wonder what type of impact that will have on our E&O insurance that is underwritten by them?
I know that FREIA and a few others use AIG or one of their subsidiaries.

Ben Garrison
09-17-2008, 08:44 AM
Scott -

I've been fielding questions about this since the news broke. There is no need for concern at this point. AIG, as most people know, is a holding company with roughly 47 subsidiary insurance companies. National Union Fire Insurance Company is FREA's underwriting company. Which is a profitable subsidiary for AIG. The ones who are in trouble are those which have a heavy stake in the investments geared toward securties backed by subprime mortgages.

There is a good article on CNN which gives some good insight on this topic. Check it out.

Five common AIG questions answered - Sep. 16, 2008 (http://money.cnn.com/2008/09/16/news/companies/aig_questions/index.htm)