Interesting press release today from the Federal Reserve Bank of New York concerning their transaction involving AIG:

We understand the importance of keeping AIG’s regulated subsidiaries—which include its insurance companies— well—capitalized, and will continue to work with their regulators. Policyholders across the entire AIG family should take comfort from the fact that AIG’s regulated subsidiaries may be supported by, but are not obligated under, the Federal Reserve’s loan facility.

As we indicated before the insurance subsidiaries of AIG, including Travel Guard, continue to be sound and it appears from this statement they can only benefit from the Federal Reserve’s loan facility.

Related posts:

1. What if my insurance company goes bankrupt?
2. UK vs USA – The State of Regulation

This entry was posted on Monday, September 29th, 2008 at 4:56 pm and is filed under Travel Insurance News. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.