WASHINGTON: American International Group Inc (AIG) plans to absorb losses for a dozen insurance units after their securities lending accounts suffered US$13bil of writedowns tied to the subprime mortgage collapse in the past year.
The world's largest insurer would assume as much as US$5bil of any losses on sales of the investments, up from a previous commitment of US$500mil, Christopher Swift, vice-president for life and retirement services, said in an interview. AIG also would inject an undisclosed amount of capital into some of the subsidiaries, he said.
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