American International Group, Inc. (AIG) has launched Collateral Flex
Option (CFO), a new risk financing solution for companies with large
deductible casualty insurance programs in the U.S.
CFO provides a flexible alternative for companies that would otherwise
need to tie up capital or maintain costly lines of credit to meet the
collateral requirements that come with large deductible policies. The
CFO option is available for a wide range of companies, including those
that need it most: smaller firms that may have yet to earn an
"Posting letters of credit or other forms of collateral for large
deductible insurance programs can exacerbate the challenges companies
already face with tight credit markets," said Russell Johnston, Product
Line Executive, US and Canada. "We're offering customers an option that
did not exist before. "
CFO is available to qualified AIG clients as a way of deferring
collateral requirements by up to 50% on large deductible Workers
Compensation, General Liability, and Commercial Automobile Liability
insurance policies, on an annual basis. Annual CFO amounts deferred for
all policy periods of the company's insurance program with AIG can range
from a minimum of $500,000 to a maximum of $5,000,000, subject to a
limit of 50% of the insured's total annual collateral posting
"CFO is an innovative risk management finance solution for customers who
want to put more of their capital at work for their business," said
Joseph A. Davide, Senior Vice President and Product Line Officer, US
Primary Casualty. "This was evident in the positive feedback that we
received from a diverse group of companies that took part in a recent
For more details, please contact your AIG Regional Casualty Executive.
Eligibility for CFO will be solely at AIG's discretion.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG companies
are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange
and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
| YouTube: www.youtube.com/aig
AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
Products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. (AIG). Not all products
and services are available in every jurisdiction, and insurance coverage
is governed by actual policy language. Certain products and services may
be provided by independent third parties under contract with AIG or its
subsidiaries or affiliates. Insurance products may be distributed
through affiliated or unaffiliated entities. In Europe, the principal
insurance provider is AIG Europe Limited.
Matt Gallagher, 212-458-3247