AIG takes a hit in the fourth quarter

The American International Group is reporting, in the fourth quarter, the company will have to take a charge back of over $4 billion in order to secure reserves on what they call long-tail insurance policies. These policies were sold by the company’s Chartis branch which offers property and casualty coverage. The boost is due, in part, to the rising cost of claims and risk management. These long-tail claims generally can take years to resolve and accrue heavy price tags during that period. There are concerns that AIG has been favoring…

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