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The AIG Crisis: By the Numbers
Oh dear, what shall happen to the Mancs now? Obrigado all!
As the fate of American International Group is decided in a complicated dance that includes the Federal Reserve, J.P. Morgan Chase and the governor of New York, the markets are scavenging for perspective and information on the massive insurer. Deal Journal tracked down some key numbers that offer a view into AIG, how much it has, how much it owes and what it could sell.
The size of AIG’s balance sheet as of June 30, down from $1.06 trillion in December.
The approximate size of AIG Investments, a 500-staff fund-management arm that puts money into private-equity funds and so-called funds of funds. AIG Investments was founded in 1996 with 300 staff to oversee $75 billion of AIG’s assets. Total assets under management rose by $14 billion in the first eight months 2007, or about equal to the total value of assets that came in during all of 2006. It is unclear how much has been added since.
$70 billion-$75 billion
The size of the loan the Fed asked to be arranged for AIG by J.P. Morgan and Goldman Sachs Group. The investment banks said today that attempt has failed.
The amount of excess capital AIG had going into the second quarter, after a $20.2 billion capital raising that helped fund a $5 billion shortfall.
The amount of excess capital now on hand.
The amount of money AIG needs to pay to its trading partners as a result of Monday night’s credit-rating downgrades by Moody’s Investors Service, Standard & Poor’s Ratings Services and Fitch. AIG Financial Products may need to put up another $5 billion to $10 billion of collateral on its debt, which would bring the total to $20 billion-$25 billion, according to Credit Suisse Group estimates.
The amount of cash AIG could pull from its own insurance subsidiaries as a result of a change in New York State insurance regulations announced Monday. Friedman Billings Ramsey analyst Bijan Moazami argued today that AIG could make a bridge loan to itself with that money.
Year to date unrealized losses on AIG’s total portfolio, according to Morgan Stanley estimates last week. Morgan Stanley said deteriorating residential mortgage-backed securities and commercial mortgage-backed securities have likely led to an escalation in these losses in the third quarter.
As much as $42 billion
What AIG could raise from the sale of a handful of businesses, according to Citigroup analyst Joshua Shanker. It includes $2 billion for the transatlantic reinsurance business, $1 billion for its investment in the Property Insurance Co. of China, $10 billion for the ILFC aircraft leasing businesses, $5 billion for the value of $100 billion in third-party investments managed under AIG Investments, $5 billion to $15 billion for VALIC and other annuities in the U.S. including 21st Century, $7 billion for its personal insurance lines, and just under $2 billion for its Blackstone Group assets and investments.
The odds Shanker put on AIG being able to sell assets in time to boost its short-term liquidity.
The number of basis points that spreads on AIG credit-default swaps jumped recently, according to derivatives research firm CDR. CDSs are like insurance policies on AIG’s survival, and when spreads widen it means more investors are betting the firm will fold within a certain amount of time.
The number of AIG customers world-wide. The firm also has offices in 130 countries and is listed on three stock exchanges, including the New York Stock Exchange and the exchanges in Ireland and Tokyo.This topic is deleted.