Huge reserve charge drops AIG to $2.8bn Q4 loss

AIG took a giant $5.6bn fourth-quarter reserve charge that helped
send it to a $2.79bn loss for the period, the insurer said today.
Markets responded negatively to the release, with AIG shares
down about 4.5 percent in after-hours trading in New York.
With the ink only recently dried on the insurer's
retroactive reinsurance agreement with National Indemnity, 80
percent, or $4.2bn, of total 2016 adverse development of $5.3bn
will be passed on to the Berkshire Hathaway subsidiary known as
Nico....