The world’s largest insurance company , American Insurance Group , has reported a massive eleven billion dollars loss for the year 2009. The company has been forced to increase the reserves allocation by nearly 3 billion dollars which added to the loss.
The company is expecting higher claims from policy holders in the coming years due to which it has provided more money in 2009. Also the company is not expected to return back to healthy profits at least in the year 2010, so the US government which has provided billions of dollars of aid, is not guaranteed of return of that money in the near future.
AIG reports 11 billion dollars loss in 2009