NEW YORK--(BUSINESS WIRE)--Oct. 9, 2014--
American International Group, Inc. (AIG) today announced that it has
expanded excess casualty liability limits for Class 1 railroads in the
U.S. and Canada to $1 billion per occurrence. This coverage for
catastrophe losses would be in excess of $1.5 billion in underlying
limits, and is one of the largest capacities offered to the rail
industry by a single insurer.
AIG is responding to the demands of North America’s largest rail
companies contending with record rail traffic and the growing number of
rail cars carrying potentially hazardous materials, such as crude oil.
The Association of American Railroads has reported U.S. rail demand is
at a 7-year high. The Association also reported U.S. Class 1 railroads
(including the U.S. Class 1 subsidiaries of Canadian railroads)
transported more than 407,000 carloads of crude oil in 2013, up from
9,500 carloads in 2008, an increase of nearly 4,300%.
“These expanded limits are another way AIG’s scale and innovation is
meeting the needs of our critical infrastructure clients and the
customers they serve,” said Russ Johnston, President, Casualty Americas.
“The Class 1 railroads are seeing strong growth and a resulting increase
in risks they need to cover. AIG is one of the few carriers that can
provide customers the large limits and risk expertise to meet this need.”
Derailments are the most common type of accident risk faced by Class 1
railroads in the U.S. and Canada, and they can be caused by a wide range
of factors.
“Rail companies need additional coverage to help protect their balance
sheets,” said Jeremy Johnson, President & Chief Executive Officer,
Lexington Insurance Company. “This billion dollar coverage will help
Class 1 railroads address expanding risks while continuing to serve the
growing needs of transportation customers in North America.”
The excess coverage is provided by Lexington Insurance Company and other
affiliated AIG Companies. Lexington is the largest domestic excess and
surplus lines carrier in the U.S.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG companies
are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange
and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
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AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
Source: American International Group, Inc.
Media:
American International Group, Inc.
Matt Gallagher,
212-458-3247
matthew.gallagher2@aig.com