Great news this morning from Wall Street.
There will be jubilation in the insurance industry as companies line up to snap up the bargains which will abound as AIG goes down the gurgler and sells off its few remaining assets and it's book of business. Policy holders should have little to fear, provided realistic reinsurance arrangements have been made.
Adolf was chatting to a morose colleague yesterday who asked, who is big enough to buy the largest insurance company in the world? The quick answer was 'It might have been the largest yesterday but today it is worth $70 billion less than it was yesterday."
By the way, it turns out that AIG was only the fourth largest insurer in the US. However, it's directors were imprudent enough to 'invest' heavily in the derivatives market and have been caught out with their sticky fingers in the sub prime cooky jar.
Thankfully, they are not being bailed out by the government.
Do not confuse AIG which is an American company with Australian insurance conglomerate IAG.
Anybody seen this done in New Zealand?
1 hour ago