AIG Drops As Bernstein Cuts Price Target On Loss Reserve Fears

Shares of American International Group Inc. (AIG) dropped as much as 13% Monday after an analyst slashed his price target 40% on concerns about the insurer's loss reserves that could have "major ramifications" going forward.

"It appears that AIG's loss reserves are significantly deficient again, much sooner than we would have forecast two years ago," Sanford Bernstein analyst Todd Bault said in a note as he cut AIG's price target to $12 from $20.

Bault said he was surprised by the results, adding "it appears at a minimum that AIG's results are worse than its other large peers and directionally worse than its booked reserves."

A representative from AIG declined to comment to Dow Jones Newswires.

Read Full Article from Wall Street Journal

- Posted: 2009-11-30 10:53:52

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