Best AIG Car Insurance Information
AIG (American International Group, Inc.
) is an American insurance corporation that is publicly traded in the New York Stock Exchange under the symbol AIG.
AIG was once the eighteenth largest public company in the world according to the 2008 Forbes Global 2000 list.
It has several headquarters throughout the world.
The corporate headquarters is located in New York City in the American International Building.
You can find their other headquarters in London, Paris, and Hong Kong.
The general public may see AIG as the best car insurer in the world but they are actually involved in the financial services business.
American International Group, Inc.
is a company that owns 176 financial services companies throughout the world.
They also own 71 insurance entities based in the US.
Their insurance entities are all financially sound or "solvent" in insurance regulatory terms.
In other words, AIG is still one of the best car insurance companies to pay the money needed for claims presented to them by their policyholders.
AIG's problem recently began with it financial holding company which is subject to federal regulatory oversight by the OTS (U.
Office of Thrift Supervision).
The financial holding company took a risk that they could not handle by investing in collateralized debt instruments.
An example of such instruments would be credit derivative swaps on securities backed by mortgages.
Recently, everyone learned information about the U.
housing markets going through a downturn.
This event is what caused the financial holding company to lose a lot of money.
In September 2008, AIG credit ratings were below "AA" levels which caused the company to have a liquidity crisis.
The Federal Reserve Bank in the United States produced an eighty-five billion dollar credit facility so that the company can bear the increased collateral obligations.
This action caused an issuance of a stock warrant to the bank for more than seventy-nine percent of AIG's equity.
By May 2009, the United States Treasury and the Federal Reserve Bank gave AIG as much as seventy billion dollars in investment monies.
AIG also received sixty billion dollars in credit line and over fifty-two billion dollars to purchase their mortgage-based assets.
The grand total comes out to over one hundred eighty-two billion dollars.
Due to the recent problems with American International Group, many Americans wanted to switch to another car insurance provider.
A word of warning, if an agent tells you to switch policies because AIG might not be able to pay your claim, the agent is giving false information and could be in violation of the Unfair Trade Practices Act in many states.
You can look at the financial information of an car insurance company by contacting your state insurance department.
Make sure you read and fully understand your car insurance policy's terms and conditions before making a final decision.