Ogden rate hit to affect troubled insurer’s first quarter results

Ogden rate hit

Troubled US insurer AIG will take a $100m (£78m) pre-tax hit to its first quarter results because of the cut in the UK personal injury discount rate to -0.75% from 2.5%.

Lord Chancellor Liz Truss cut the discount rate, also known as the Ogden rate, to its new level on 20 March.

AIG had assumed in its reserving that the Ogden rate would only fall to 1%, in common with many of its peers, and so will have to boost reserves by $100m to account for the rate cut to -0.75%.

The Ogden rate hit will mainly fall on the liability and financial lines business within the commercial insurance unit in the UK, AIG said.

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

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