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Description: The American International Group said on Friday that it lost about $11 billion last year, surprising analysts and showing the long-term risks inherent in the types of large, complex insurance coverage that the company once pioneered.

Source: NYTimes.com

Date: 02/26/2010

Link:  http://www.nytimes.com/2010/02/27/business/27insure.html?ref=business

Questions for discussion:

  • What is your view of this business model in terms of risk and sustainability?
  • Do you believe AIG decisions will grow more conservative in time, because of the problems described in the article?

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