Global insurer American International Group is to provide improved disclosures regarding its use of reinsurance to mitigate losses in its property and casualty unit, following a request to do so by The U.S Securities and Exchange Commission, according to Reuters.
SEC staff reportedly asked AIG to add information that includes details surrounding the amount of reinsurance it receives from an agreement with Berkshire Hathaway.
Additionally, AIG has been asked by the regulator to include a note about the methodology behind its reinsurance calculations as well as factors that may cause those amounts to change, reports Reuters.
In a reply to the SEC dated 18 September, Associate General Counsel James Killerlane, said AIG was making the changes.
AIG agreed last year to pay Berkshire Hathaway subsidiary, National Indemnity Company $10.2 billion to take over a number of long-term risks from U.S commercial insurance policies that were losing money.
The subsidiary agreed to absorb 80% of net losses in excess of the first $25 billion, with a maximum liability of $20 billion.
AIG did not receive any payments last year because its claims payouts did not reach the $25 billion threshold.
