NU Online News Service, Feb. 4, 9:55 a.m. – American International Group Inc., New York, says it will record a $2.8 billion charge for the fourth quarter of 2002 to cope with actual property-casualty losses and beef up reserves to handle future losses.

AIG will use 60% of the new reserves to protect itself against excess casualty losses; 25%, to back directors and officers liability policies; and 15% to back other types of casualty policies, including health care liability policies.

But AIG says its life insurance and financial services businesses are "in excellent shape to report satisfactory results."

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