ADC 'transforms' reserve risk profile: AIG

AIG's mammoth $5.6bn
reserve charge dominated headlines last week, but there was also
significant disclosure on the insurer's landmark adverse
development cover (ADC) with Berkshire Hathaway in its fourth
quarter earnings presentation.
And while there continue to be justifiable questions about the
credibility of AIG's reserving practices, there is no doubt of
the crucial role the National Indemnity (Nico) deal will play in
its fortunes.
As previously reported, the ADC provides 80 percent protect