Summary
Implications; 1.The Largest Plan for the Sale of Insurance Company Assets will miss all Goals as potential bidders are plaqued wiyh plunging stock markets. 2.Many U.S. Life Insurers basis of valuation will plumet as the basis of assets have declined , materially , and a "Fire Sale" may be necessary in the near future. 3.A need has been generated to resemble "Book Value" , in order to pay-down government debt and , still, maintain a capital base to generate earnings. 4.Book Value is defined as assets minus liabilities and have been trading between 62% and 94% - clearly not a value -added to the capitalization rate of the firm. 5.The Sale of Hartford Steam Boiler indicates that a publically traded book value a has, clearly , delineated in value between the years of 2000 to the year 2008. 6.The question , at hand: "Is the loss of value due to failure of the Financial Markets or Operational Capacity?"
Analysis
Implications:
1.AIG's divestiture plan is, now , " At Risk".In all likelyhood they will NOT be able to have the asset valuation to cover loans outstanding. A
devestation to the Financial Market Place.
2.A salvation MAY, indeed, be deflection of such an event by the concept of "Brand Recognition" and the "Very Nature of the Company" to sustian their existance.
3.A Major Sell-Off is one other option: An agreement has been reached to divest the Private Bank, wich consists of the Insitutions wealthest clients.
4.There is a great deal of interest by one other Major Insurance Carrier to purcahse the Asian and Eastern European Operations of the firm. "Salvation or a Hidden Loss pn Capacity"?
5.All conditions of "Sale" appear to be in favor of Competitive Buyers NOT AIG - The issue at hand is , clearly, a world-wde SIGNAL!!
