Tuesday, September 16, 2008

AIG Travel Guard - Concerns Being Addressed

I know many of you purchase travel insurance and that Travel Guard has been a major provider in the industry.  Over the past few days AIG has been in the news due to its liquidity problems...apparently as a result of its dabbling in investments and businesses other than its core insurance businesses. 

While I do not claim the information below, which was just sent to me by AIG Travel Guard, is either accurate or not, I wanted to pass it along:

September 16, 2008

As you know, our parent company (AIG, Inc.) is facing challenges related to the extraordinary developments in the financial markets in the past few days. AIG, Inc. is actively developing alternatives to improve liquidity to weather this difficult time for financial markets.

AIG Travel Guard's policies are underwritten by American Home Assurance Company and National Union Fire Insurance Company. Both are member companies of AIG Commercial Insurance (AIGCI), whose substantial capital position is independent of its parent.

AIGCI companies, which include the Lexington Insurance Company, National Union and American Home Assurance Company, remain well-capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.

Even if the parent company files for bankruptcy, AIGCI's capital position will remain intact and available to underwrite policies.


Here are a few more facts we think are important for you to know:


* AIGCI companies, which include the Lexington Insurance Company, National Union and American Home Assurance Company, remain well-capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.

* AIGCI's capital is protected by regulators, ensuring that policyholders' interests are paramount.

* AIG Commercial Insurance continues to exhibit strong financial performance with 2008 second quarter operating income of nearly $1 billion, net written premiums of $5.99 billion and a profitable combined ratio of 93.7%.

* According David Neustadt, the deputy superintendent for public information for the New York state insurance department, "If you have a policy with AIG insurance company, they are financially strong and solvent. They have the capability to pay on any claims, and our job is to insure that they continue to have the ability to pay."

AIG Travel Guard will continue to communicate developments to you as they occur. We want to assure you that despite the current uncertainties, AIG Travel Guard will continue to exceed your expectation with comprehensive protection and unparalleled customer service.

I will keep you posted.