AIG reserve charge points to slower RoE growth

AIG will probably take longer to achieve its target of a low-60s
core loss ratio in its commercial business, and therefore its key 9
percent return on equity (RoE) target, following its $5.6bn fourth
quarter reserve charge, according to Morgan Stanley analysts.
The giant adverse reserve development, which was far greater
than the approximate $1.5bn-$3bn charge anticipated by analysts,helped send AIG to a $2.79bn loss for the fourth quarter.Following the insurer's retroactive reinsurance agreemen