AIG Announces Impact of UK Ogden Discount Rate Change and Treatment of Deferred Gain Associated with

AIG press release April 19, 2017 ------- American International Group, Inc. (NYSE:AIG) announced two items impacting results for the quarter ending March 31, 2017. In the first quarter of 2017, AIG expects to record an increase to prior year loss reserves of approximately $100 million pre-tax from the recent decision by the UK Ministry of Justice to reduce the discount rate applied to lump-sum bodily injury payouts, known as the Ogden rate, to -0.75%. Our carried reserves as at December 31, 2016 were estimated using an assumption that the Ogden rate would decline to 1.0%. This discount rate change primarily impacts the Liability & Financial Lines business within Commercial Insurance in the United Kingdom. To learn more click on the picture below to read the release.