AIG sure has sold a lot of those things.
I've heard that most states limit recovery of annuities to 100k of present value.
You'd think that even AIG would lay off some annuity reinsurance.That's pretty much it, THEY (the insurer) is on the hook to "guarantee" the funds.....
I'm sure Lehmans would sell them some.You'd think that even AIG would lay off some annuity reinsurance.
You'd think that even AIG would lay off some annuity reinsurance.
I read an article a few months ago about insurance companies not having the assets to cover the annuities if the market went south. From what I remember there is fine print in the contracts saying that you would only get a certain minimum, and therefore the "guarantees" aren't really guaranteed. I'll see if I can find it again.
I read an article a few months ago about insurance companies not having the assets to cover the annuities if the market went south. From what I remember there is fine print in the contracts saying that you would only get a certain minimum, and therefore the "guarantees" aren't really guaranteed. I'll see if I can find it again.
There are a few states that guarantee higher. DC covers $300K, Washington State $500K. I'm sure it would be a PITA to go through the claim process.I've heard that most states limit recovery of annuities to 100k of present value.
Where are all those annuity salesmen who once flocked to this board whenever the word "annuity" showed up in their Google alert? You'd think at least one or two of them would pay us a visit to reassure folks their "investment" was safe.
Careful what you wish for - they'll be here bragging that their products paid a straight 4.6% interest rate the whole time the market was losing 20% annualized, housing was depreciating, and recession roared on.
(Maybe they won't tell you about the 4% when the market was doing 10%.)
Based on pure naivete, I suspect that if AIG or another big annuity writer was on the brink of default, you'd see a huge rescue effort by the insurance titans. They can't afford to let that happen - it would kill their new annuity sales in a heartbeat.
Who knows.No,I think the other insurers are cold-blooded and would have no problem seeing AIG fail. Then Prudential, ING, Hancock, Pacific Life, and others can swoop in an pick their bones.......
I doubt they're in good enough shape to pick anyone's bones.No,I think the other insurers are cold-blooded and would have no problem seeing AIG fail. Then Prudential, ING, Hancock, Pacific Life, and others can swoop in an pick their bones.......
Buffett won't do anything unless he can steal it. It would have to be full of clean assets that will eventually be easily liquidated for big profits. Berkshire's balance sheet is very strong so it could wait this out but Warren B loves cash right now.I head someplace this morning the Mr Warren B. is in "important" talks with AIG - maybe he is looking for a better deal than BAC got of MER?
I head someplace this morning the Mr Warren B. is in "important" talks with AIG - maybe he is looking for a better deal than BAC got of MER?
It might be fun to watch the Oracle of Omaha sweat a little.Or they're discussing the impact of AIG's other business to the reinsurers owned by BRK. Warren could be on quite the hook, if they have substantial reinsurance contracts with AIG.
-- Rita
Or they're discussing the impact of AIG's other business to the reinsurers owned by BRK. Warren could be on quite the hook, if they have substantial reinsurance contracts with AIG.
-- Rita
I head someplace this morning the Mr Warren B. is in "important" talks with AIG - maybe he is looking for a better deal than BAC got of MER?
Opps: Just saw this at MSN Money: "NY Gov. Paterson says state will effectively lend AIG $20 billion and urges Fed to step up as well. More soon." Wonder what the interest rate is?