Liberty Mutual criticises “ridiculously low prices” from AIG

Liberty Mutual boss Edmund Kelly has said AIG’s pricing "borders on the irrational," and is using taxpayers money to undercut the rest of the market, Dow Jones reports.

He did not name AIG but said the culprit was "not allowed to spend taxpayer money on compensation" and is instead "spending it on ridiculously low prices.”

A spokeswoman with Chartis, AIG's property/casualty insurance unit, said: "This kind of speculation is obviously competitively driven. We have not changed how we underwrite or price our business.

“Several independent entities have reviewed our pricing in the near past and have found nothing unusual about our actions in the marketplace. In addition, a recent market survey of corporate risk managers indicated that our pricing is in line with industry trends."