FCIC - AIG - Annuities

  • 2008 0913 - FCIC - FRB (Brian Peters/NY/FRS) -FRBNYAIG00510 - 2p
    • They are also large issuers of annuities and have $11B of contingent exposure in their domestic retirement services business.
    • These are retail but run by large sponsors who could encourage accounts to put back the annuities in exchange for cash if they lose confidence in AIG.
    • These sponsors are U.S. banks who have exposure elsewhere.
    • This could be on top of the $18B payout above.
    • They have similar exposures in Japan but could not quantify the size.