Mr. Bault's analysis showed loss reserves were $11 billion short, with most of the deficiency in three casualty lines: Workers Compensation, General Liability and Professional Liability. One reason he offered: AIG has been using less reinsurance.
The company declined to comment. That kind of shortfall could complicate its ability to retain customers and repay government debts. Shares fell 4.90, or 15%, to 28.40.