New AIG Chief Briefs Commissioners

Edward Liddy, the new chief executive of American International Group Inc., today assured insurance commissioners that AIG’s insurance units are sound.

Liddy spoke at a closed briefing here at the fall meeting of the National Association of Insurance Commissioners, Kansas City Mo.

Liddy said in an interview after the briefing that the AIG insurance units are “absolutely safe and extremely well capitalized.”

An asset sale plan is in the works, and AIG will make the plan public “as soon as we can,” Liddy said.

Liddy declined to comment on whether the insurance or leasing units would be sold and whether there has been an uptick in surrender activity.

NAIC President Sandy Praeger, the Kansas insurance commissioner, said in an interview after the briefing that the briefing had given her the assurance that the AIG insurance units are safe.

Management will decide which units to sell, and the only changes policyholders will notice will be new company names on their contracts, Praeger said.

There was no indication given during the briefing that there has been an increase in the number of AIG insurance contract surrenders or cancellations, Praeger said.

Pennsylvania Insurance Commissioner Joel Ario said the balance sheets of AIG’s insurance units have not changed.