Workers' comp drives AIG $5.6bn reserve charge

US primary workers' compensation was the biggest line in
AIG's fourth quarter reserve strengthening, with more than half
of the deterioration coming from the accident years 2011-15.
The US insurance giant announced a $5.6bn Q4 reserve charge last
night, far greater than the $1.5bn-$3bn charge anticipated by
analysts.
The adverse development helped to send AIG to a $2.7bn loss for
the fourth quarter.
Slides published to accompany AIG's
Q4 earnings call showed that $1.8bn of the $5.6bn reserve
str