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True Core AIG Was Never Going To Fail – Insurance Part Solid


AIG TARP Not Needed For Insurance Part

The true core AIG is still growing steadily in the Workers Comp arena. In the last post, I included a passage from a very recent publication by the US Treasury Department on the TARP program.

Picture Of True Core AIG Building
Wikipedia – Aig

As I have posted very often, the core of AIG’s business was never going to fail. The financial products area was failing, but AIG the insurer was doing well. The point that the Feds missed was that a bailout was never needed for the insurance services part of the business. I have friends that work for AIG that I verified this with before posting anything on the bailout.

The Federal Government would have done very well to split AIG into two parts. AIG later did this with the AIU unit. The balance sheet of the insurance business would have never required a bailout whatsoever. It was healthy and obtaining more business due to very precise and aggressive underwriting of certain markets. Even though they were huge, they did not just write policies to obtain the business.
Hand Pointing Towards True Core AIG Business Icon

Splitting the company into the two halves may have exposed the underbelly of a financial services area (not just AIG) that was very risky at best. However, in my opinion AIG Insurance Services would have had a good balance sheet. The Feds may have decided to mix the funds to not create a panic if AIG’s financial services area had to be bailed out on a standalone basis.

However, as we all know some of the biggest names in corporations (Donald Trump, etc.) specialized in splitting businesses into components. The profitable ones are usually kept and the unprofitable or marginal components are sold off – which is akin to the taxpayers bailing out the true core AIG.
I may be off-base with this post. If anyone would like a copy of the government publication, email me and I will send it to you. It is worth reading as it was our $$$.
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AIG – Government Missed Point

AIG Failure TARP Bailout The Government Missed The Point of AIG.The following is a passage from a document published by the UNITED STATES DEPARTMENT OF

James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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