BestWeek: Loans Repaid, AIG Faces New Public Stock Offering

OLDWICK, N.J.--(BUSINESS WIRE)--In paying back its loans to the federal government, American International Group Inc. has rebounded to its position as a power player in the industry, Dan Weedin, an insurance consultant with Toro Consulting, said in this week’s issue of BestWeek U.S./Canada.

“Even though AIG got a black eye, I think they weathered the storm”

“Even though AIG got a black eye, I think they weathered the storm,” Weedin told BestWeek. “From an insurance standpoint, people still consider AIG to be a formidable player in the market.”

On Jan. 14, AIG paid back its loan from the Federal Reserve, and converted the U.S. Treasury Department’s preferred stock investment in the company into common shares, which will be sold to the public over time.

In BestWeek Europe, heavy financial pressures on families in the United Kingdom have left 39% of households reluctant to accept additional financial responsibilities, according to Aviva plc.

Also in BestWeek U.S./Canada, fraternal U.S. life insurers are preparing for a showdown in the coming months over their tax advantage as federal and state lawmakers search for new sources of revenue.

Repealing the tax-exempt status of fraternals and other nonprofit organizations “can be very appealing to lawmakers,” Joseph Annotti, president and chief executive officer of the American Fraternal Alliance, until recently known as the National Fraternal Congress of America, told BestWeek.

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