A quick rundown of news affecting the US Insurance Market courtesy of New York Insurance Research firm ADVISEN:

US House defeats $700B financial markets bailout Business & Economy
WASHINGTON_The House of Representatives on Monday defeated a $700 billion emergency rescue for the U.S. financial system, ignoring urgent warnings from President George W.

New York Hires Firm to Evaluate AIG Sales Regulation
The New York State Insurance Department has hired an investment banking advisory firm, Centerview Partners, to assist in evaluating potential sales of American International Group Inc. subsidiaries, the department said in a statement.

Greenberg and Starr Sell 40 Million Shares of AIG Stock Insurers
Maurice Hank Greenberg and the company he controls sold 40 million shares of American International Group Inc. for $125.9 million, according to reports filed with the U.S. Security and Exchange Commission on Sept.

Asset ‘insurance’ is next scary Wall Street novelty Business & Economy
Sep. 28–Remember that simpler time before you had ever heard the term “subprime mortgage”?

New information from John Q Doyle, AIG Senior Vice President, Domestic General Insurance and President and Chief Executive Officer of National Union Fire Insurance that stated the following:

September 25, 2008 Dear Business Colleague, Yesterday, Joel Ario, Pennsylvania’s Insurance Commissioner, released a statement declaring that his Department’s most recent examination of the AIG group insurance companies that are domiciled in Pennsylvania are financially sound and that policyholders’ insurance policies are safe. Pennsylvania is a key domiciliary state for our commercial insurance companies, and this statement further demonstrates his Department’s confidence in the strength and stability of AIG’s commercial property and casualty operations. Additionally, as you may have read, AIG signed a definitive agreement with the Federal Reserve Bank. This important step allows us to move forward in finalizing and implementing our strategic initiatives and shows the Federal government’s recognition of AIG’s important role in the global financial markets. For more information about the transaction, please visit www.aig.com/commercialinsurance. We continue to conduct meetings and calls with our clients and brokers, and appreciate your time. Should you wish to schedule a call or meeting with our management team, please reach out to your local AIGCI representative or email us at Toserve@aig.com. Thank you again for your continued faith in the people and strength of AIGCI. John Q. Doyle President and CEO AIG Commercial Insurance Additional information about the strength of the AIG Commercial Insurance operations is available by clicking here. You may also contact your AIG Commercial Insurance representative or visit us at: www.aig.com.

Copyright © 2008 American International Group, Inc. All rights reserved.

175 Water St. New York NY 10038

Diversified Insurance Brokers is hosting a Utah Technology Council Lunch Event.

Details are as follows:

Join us at our next UTC Clinic where Mr. Aaron Latto, Esq., Claims Director/VP for Travelers Insurance, will discuss the most current security and performance exposures all companies face, along with claim scenarios from across the nation. Then hear a true-life story from a former TenFold executive about the company’s experience with similar exposures and lessons learned. Learn how to protect your business – and stay in business.

This event is open to the general public. PLEASE REGISTER BY OCTOBER 3.

When:
Thursday, Oct 9
12:00 pm – 1:00 pm.

Where:
Little America Hotel
500 South Main Street
Salt Lake City
Free Parking.

Cost:
$10 – UTC Member
$15 – Non-UTC Member

For more information, please call John Campos with the Diversified’s Venture Practice Group at 801.325.5000

Diversified Insurance Brokers
Venture Practice Group
136 E South Temple #2300
Salt Lake City, Utah 84111
801.325.5000
www.diversifiedinsurance.com

AIG has temporarily dodged a bullet but has a long, uphill road to regain investor and client confidence. Their insurance operations are still strong and have maintained a good rating for now. I received an additional email from AIG yesterday evening, but instead of reciting repetitive information I will merely offer a few highlights:

Here are some additional things to keep in mind as we evaluate AIG as a viable insurer:

• It is important to remember that AIGCI’s subsidiaries, including Lexington, National Union and American Home, continue to be well capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.
• AIGCI has ample resources to pay policyholder claims, paying $73 million in claims every single day.
• AIGCI’s statutory surplus has grown over 50% since 2005 to $26.7 billion, exceeding the total shareholders’ equity of all domestic commercial insurance holding companies.
• AIGCI’s Net Written Premium to Surplus Ratio, a key indicator of the amount of leverage of a property casualty organization is <1.0 with total NWP of $12.7 billion compared to policyholder surplus of $26.7 billion at the period ending June 30, 2008.
• AIGCI’s financial strength ratings are excellent and higher than many commercial insurance companies.