AIG Reports Improved Results

What is AIG?

 # American International Group, Inc. (AIG) is an American insurance corporation. Its corporate headquarters are located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Défense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2008 Forbes Global 2000 list, AIG was once the 18th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008.

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         -The American International Group (AIG) reported net income of US$11.2 billion for the fourth quarter period in 2010, which ended on 31st December 2010. The bailed out insurer’s income included the sale of assets as it restructures its business in order to repay the loan received from the US government in 2008 following the global collapse of financial markets.

         -The New York based insurer’s full year earnings for 2010 totaled US$7.8 billion, reversing the loss in 2009 which amounted to US$10.9 billion. AIG’s fourth quarter 2010 earnings of US$11.2 billion compares with the loss of US$8.87 billion in the same period last year.

         -However, after disregarding income generated from the sale of AIG assets in 2010, the insurer had an operating loss of US$2.2 billion from its global operations, compared to an operating loss of US$1.3 billion last year.

         -The troubled insurer received a total of US$182 billion from the US federal government to rescue the insurer from the brink of collapse in 2008, after the US sub-prime mortgage crisis triggered a domino effect in the world financial markets. Since receiving the US government bailout, AIG has been restructuring global operations, which has included selling off international insurance subsidiaries, in order to generate capital to repay the US taxpayer.

         -Robert H. Benmosche, AIG’s President and Chief Executive Officer, said: “We completed several key restructuring milestones in the quarter and we remain focused on long-term growth and building value at our ongoing insurance operations and other businesses.”

         -Included in AIG’s fourth quarter earnings was a net charge of US$4.2 billion for AIG’s property insurance arm Chartis. The injection of capital was necessary to strengthen Chartis’ provision against losses as the insurer is expected to face stiff competition in this segment of business. Chartis worldwide net premiums written amounted to US$7.6 billion in the last quarter of 2010.

                                                                                         Posted by: Alin

From here on

         From here on i will keep you well informed on insurance news, any type of news, since you know now what insurance means and what benefits or maybe not so good benefits offers to me , my family, you and your family and when you expect less to happen something tragic there will still be hope thanks to these organisations. Even though it seems they rip off money out of us, those money you contribute will probably help another family if not yours.
         So don't hate me for saying all this, i am not forcing you whatsoever to be a part of this in any way, you decide. I am only giving an example on what insurance would mean to us. I will try to keep you well informed with insurance news, used content or original content and you can also register on my blog if you want to either make friends or be friends with me since we are in this together. Have a great day :)
   Posted by:Alin

Basic Insurance. Why do we need it?

First of all let's take the meaning of insurance:

      From my point of view insurance provides financial protection against a loss arising out of happening of an uncertain event such as: Cataclismic events (earthquakes, tsunamis, tornadoes etc), Car accidents, Explosions, etc. A person can avail this protection by paying premium to an insurance company. There are probably thousands or hundreds of thousands of insurance companies around the world that are offering cheap or expensive insurance services, -depending on the type-  that would want to have you as it's client. By becoming their client, contributions made by yourself and other persons are used as a service to protect yourself from common risk. Thus a pool is created through these contributions, meaning that any loss to the insured in case of happening of an uncertain event is paid out of this pool. Therefore, insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.

Definition:
         
                Insurance is a contract made by two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixes sum of money to the other party if an uncertain event happens (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event -mentioned in the above statement- in case of general insurance. Thus, this contract ties two parties (the insurer(assurer) -the insurance company- and the party whose risk is covered the insured(assured) -the client- .

There is a warning though!
                
                 There are indeed alot of legit insurance companies but not all of them! I am talking of course about scams. Ghost companies that would like to eat your money and when you are in danger they would laugh at you. If you know of any scam insurance companies feel free to post them here on my blog in comments.
  

                                                                                    This was my first post:  Have a great day; Alin