Boston, MA 10/10/2014 (wallstreetpr) – According to reports, American International Group Inc (NYSE:AIG) has decided to offer additional $1 billion casualty capacity for various North American Rail Companies. The decision was announced by AIG itself saying that it had expanded liability limitations for Class 1 railroads in Canada and US. The total cover would be more than $1.5 billion in underlying limits. As per the information, it’s one of the largest casualty capacities offered by any single insurer in the nation.
What prompted AIG to go ahead with this expanded liability announcement:
American International Group Inc (NYSE:AIG) is one of those very few companies that have been trying to respond to the increased demand of American rail companies that contain huge traffic in the best possible way. Its main focus is mostly on those companies that offer rail cars for carrying materials like crude oil. As per the information made available by the Association of American Railroads, the demand level of US rail is at eye-steering seven-year high level. It also stated that close to 407,000 carloads of crude oil was transported through U.S. Class 1 railroads in 2013, which was 9,500 carloads more than the total capacity in 2008. In terms of percentage growth, it experienced close to 4,300% increment in capacity over a span of five years.
These increased numbers and expanded limits are good examples of showing AIG’s improvement over the last few years in terms of innovation to fulfill demands of its clients. According to Russ Johnston, President, Casualty America, with the help of increased capacities, American International Group Inc (NYSE:AIG) is capable of showing innovation that it has implanted over the years for meeting customers’ requirements. The growth of Class 1 railroads has been impeccable over the last few months, which has also increased various risks that they have to cover. AIG’s offer can make a real difference in such situation.
