AIG unit faces potential fines in California over management of fire claims

American International Group Inc. (AIG) subsidiary, New Hampshire Insurance Co., along with York Risk Services, its claims processing agent, are now facing citations for 125 violations connected with alleged improper handling of California wildfire related claims from 2008. According to California Department of Insurance (CDI) general counsel, Adam M. Cole, “The allegations in this case reflect a troubling lack of attention to consumer needs by New Hampshire Insurance Company.” CDI has stated that each of the various violations for which the insurer has been sited have to do with “an…

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AIG to repay $6 billion to U.S. government following AIA share sale

American International Group Inc. (AIG) will use $6 billion following the sale of AIA Group Ltd. shares to repay some of the $182.3 billion in bailout funds it received from the United States government. According to a sales document, this insurance company, based in New York, is majority owned by the government, and is selling approximately 1.7 billion shares of AIA at between HK $27.15 and HK $27.50 per share, to unidentified institutional investors. The same document revealed that approximately 19 percent of the AIA stock will still be held…

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Tax benefit causes AIG profits to skyrocket

American International Group Inc. (AIG) has announced a fourth quarter 2011 profit of $19.8 billion following a large tax benefit that it received after it submitted its predictions regarding its ability to maintain the generation of profits over the upcoming years. The bailed-out insurance company received tax benefits worth $17.7 billion within the last three months of last year. This was a sum that was significantly greater than the $1.6 billion operating income that it received from its insurance businesses and other branches throughout that same time. Equally, though, the…

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Lexington Insurance releases new college product to protect from losses from tuitions from international students

Chartis-owned company, Lexington Insurance Co., has released a new form of coverage geared toward colleges and universities, to help them to protect themselves against the tuition losses that they face from international students who are enrolled, but who withdraw as a result of a catastrophic event at home. Lexington’s senior vice president and executive from their property division, Erik Nikodem, explained that data from the Institute of International Education says that there were over 700,000 international students enrolled in universities and colleges in the United States during the academic year…

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American commercial property coverage rates poised for increase

According to the insurance brokerage at Marsh & McLennan Cos., American businesses are likely to face higher property insurance rates following the significant losses that insurers faced as a result of the decline of investment income and the natural disasters in 2011. Following a survey performed by Marsh Inc., it determined that over half of the clients in the United States have said that the last half of 2011 included an increase in their cost of property insurance. Among the policyholders who were at the greatest risk of losses from…

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