AIG, parent company of American General Life Insurance, has been a topic of much discussion and disdain after being bailed out to the tune of $180+ billion by the US Government.
As American General customers have called in concerned over having their life insurance tied up with a failing company, I have been steadfast in my belief that, at the very worst, American General would be sold to another company. This occurrence would not change any policy guarantees or prices, really not a lot different than your mortgage being sold to a new mortgage holder.
It now appears that AIG has been working quietly and diligently to put a plan in place to pay back the government and, at least at this juncture, sale of American General is not part of that plan. This is good news for all as American General, through this whole ordeal, has kept itself competitive both in underwriting and in price. They have gone about their business of remaining healthy and providing quality service in spite of all of the distraction.
This is one of those cases where even the worst case scenario would not have been harmful to American General clients. When AIG was considering sale of American General, Met Life was the leading contender to buy the company. Based on Met Life’s size and strength I doubt seriously that any customers would have been adversely impacted if the sale had come to pass.
Bottom line. It looks like yet another piece of the crumbled economy is being fitted back into place.