Insurer falls 90 cents on NYSE and hits lowest since October 1998.

American International Group (AIG), the world’s largest insurer by assets, fell 90 cents, or 2.3%, to $38.05 yesterday in New York Stock Exchange composite trading, hitting its lowest in almost a decade.

It was reported that the company plans to raise $20bn (£10.1bn) to protect against further writedowns. Analysts in London were told that the insurer took in $13.5bn (£6.8bn) last week from selling stock and units that can convert into shares, and it plans tol raise the rest in a sale of hybrid bonds.

The move will see AIG raise 60% more than it said it needed on 8 May after a writedown on holdings to reflect their reduced market value. That added to a record $7.81bn (£3.97bn) first-quarter loss.