Saving You Money For Life

AIG, the parent company of American General, reported a sizeable quarterly loss on their investment portfolio. This loss is generating negative publicity for AIG, and we’ve received many questions from clients as to whether American General is a safe company to buy life insurance from.

AIG is a diversified International insurance and financial services corporation, and this paper loss barely makes a dent in their $800 Billion asset base. The investments that American General is permitted to carry are of much higher grade than those mortgage and credit default agreements that caused the loss; most of the American General investments are AA and AAA insured bonds. We do not see any reason at this time for the A.M. Best (A++) or S&P (AA+) ratings of American General to to be reduced.

I would be happy to answer any additional questions or address your concerns regarding the financial health of AIG and American General.