$85bn package sees US government take 80% equity stake in insurer.
The Federal Reserve Bank of New York has saved AIG with an $85bn rescue package ensuring the company can meet its liquidity needs.
The Bank is providing a two-year revolving credit facility that will see the government receive a 79.9% equity stake in AIG.
The insurer will pay interest on the loan at 8.5% above the three-month London Interbank Offered Rate.
In a statement, AIG said: "The AIG Board has approved this transaction based on its determination that this is the best alternative for all of AIG's constituencies, including policyholders, customers, creditors, counterparties, employees and shareholders. AIG is a solid company with over $1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues."
It added: "We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis. We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG's businesses to continue as substantial participants in their respective markets. In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG."
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.
