AIG Europe raises €680m from sister firms to boost capital position

The insurer says transfers from other AIG companies strengthened its solvency ratio to over 450% • Hannover Re

AIG Europe SA, part of the troubled American Insurance Group, has almost doubled its total capital funds to some €1.3bn (US$1.7bn) as at 30 December 2008. The company recently raised €680mn ($883mn) through internal transfers, which according to AIG Europe’s president and chief executive officer Julio Portalatin demonstrated the inherent financial strength of the AIG insurance subsidiaries. He noted that the transfer increased the company’s solvency ratio to over 450% from 267%.