AIG

Thoughts from our research team on new disclosures on the firm’s proposed break up.

Hotspots include property insurance and excess casualty, where rate increases of over 30% were obtained.

AIG executives revealed that proceeds from the sale would be used to reduce the carrier’s debt leverage.

On Thursday, the carrier reported consolidated operating income of $918mn, higher than last year’s $718mn total and well ahead of the $0.54 a share that analysts predicted.

Inside P&C looks ahead to the insurer’s results/call, with both comp and capital under scrutiny.

Sources said AIG is offering some staff guaranteed bonuses and stay packages.

Banking sources are divided on whether AIG is likely to be able to find a buyer for its life arm.

AM Best said it will continue to monitor the carrier as it spins off its life and retirement operations.

The ratings agency says it will conduct a review of AIG’s group credit profile without the life and retirement business.

The carrier aims to create a separate company from its life and retirement business.

The jump follows news of a life and retirement spin out and the departure of Brian Duperreault as CEO.

Duperreault will take the post of executive chairman, and Steenland will become lead independent director.