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Mostly true. AIG's insurane and annuity divisions were never in trouble. They were profitable and doing quite well in fact. The problem is that with all of the the bad press with the name it is harder to get people to put money into their products even when they are sound. That creates the snowball effect of depleting their reserves which causes the rating agencies and analysts to downgrade their credit rating, which in turn causes producers to shy away from their products. Their single largest distributor just pushed them out of the system meaning not one of their 10,000+ advisors can use the products anymore.
While AIG's insurance arm was still sound and profitable... they won't be soon.
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Getting knocked down is no sin, it's not getting back up that's the sin
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