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As most of you know AIG, has gone through some trying times. We want to clearly advise our clients of the steps that have been taken over the last month to assure all policy holders of AIG Insurance Company’s financial strength.
On September 16th, AIG entered into a two year, $85 billion secured revolving line of credit with the Federal Reserve Bank. The transaction will ensure the parent company can meet its liquidity needs in the mortgage-backed securities business. It is very important to note, these liquidity issues are not with US Domestic Insurance Operations or Lexington Insurance Company (of which we are a program partner). Lexington is a commercial division of AIG and is highly regulated; ensuring that policyholders’ interests are paramount.
None of our policyholders should be concerned about Lexington Insurance Companies’ ability to pay claims. Lexington Insurance Company is an “A” rated, Domestic U.S., admitted insurer who is regulated by the state Department of Insurance (DOI) and is required to protect policy holder surplus. It is important to remember that AIG’s subsidiaries, including Lexington, continue to be well capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion. Please see below financial review which compares Lexington Insurance Company (AIG) amongst other insurers who are also providing terms to the moving industry.
Lexington Insurance Company (AIG) (Lexington A.M. Best Business report)
A.M. Best Rating: A (Excellent)
Financial Size: XV ($2 Billion or greater)
2007 Direct Premiums Written: $ 6,619,454,000
2007 Net Income: $ 1,206,406,000
2007 Total Admitted Assets: $14,832,236,000
2007 Capital & Assigned Surplus $ 341,557,000
2007 Policyholder Surplus $ 4,551,031,000
2007 Total Unassigned Surplus $ 4,209,473,000
Vanliner Insurance Company (Vanliners A.M. Best Business report)
A.M. Best Rating: A - (Excellent)
Financial Size: VIII ($100 Million to $250 Million)
2007 Direct Premiums Written: $ 170,594,000
2007 Net Income: $ 12,567,000
2007 Total Admitted Assets: $ 479,808,000
2007 Capital & Assigned Surplus $ 7,000,000
2007 Policyholder Surplus $ 118,555,000
2007 Total Unassigned Surplus $ 111,555,000
Transguard Insurance Company of America (Transguard A.M. Best Business report)
A.M. Best Rating: A - (Excellent)
Financial Size: VII ($50 Million to $100 Million)
2007 Direct Premiums Written: $ 90,777,000
2007 Net Income: $ 7,511,000
2007 Total Admitted Assets: $ 207,822,000
2007 Capital & Assigned Surplus $ 43,228,000
2007 Policyholder Surplus $ 81,046,000
2007 Total Unassigned Surplus $ 37,819,000
For Addition Insurance Company Comparisons – Insures Financial Strength
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