NICO estimates that 80% of net losses and allocation expenses on the reserves concerned exceed the first $25 billion and that NICO`s total liability limit under the agreement is $20 billion. AIG stated that this provided policyholders with physical protection against negative developments that exceed the current level of reserve requirements. AIG informs shareholders that AIG, as requested by the credit agreement, will issue preferred shares to a trust for the benefit of the U.S. Treasury. On October 12, 2012, AIG announced a five-and-a-half-year contract to sponsor six New Zealand rugby teams, including the All Blacks world champion. The AIG logo and the Adidas logo, the league`s main sponsor, were displayed on league jerseys.  The agreement is counted as a retroactive reinsurance agreement in the first quarter of 2017. AIG acknowledges a deferred loss or profit at the beginning of the agreement at the beginning of the agreement, corresponding to the difference between the consideration paid and the reserves sold. Had this agreement been reached on January 1, 2016, AIG would have recorded a loss of approximately $2.9 billion on a reserve basis of approximately $34 billion at that time. This loss would be reduced by THE NICO reinsurance repayments expected by AIG to 80% of the decline in the unfavourable development of the 2016 financial year. If this share exceeds $2.9 billion, a deferred profit is calculated, amortized in the profit and loss account based on the expected recoveries of NICO`s cash reinsurance. The agreement with National Indemnity Co. (NICO), a subsidiary of Berkshire Hathaway Inc., will enter into force on January 1, 2016.
AIG presents 8-K on the terms of the master investment and credit contract with the New York Fed, ML III and Bank of New York Mellon to purchase CDOs and multi-sector CDS. AIG submits 8-K to the U.S. Treasury under the terms of the securities purchase agreement. The Board of Governors authorizes the New York Fed and AIG to enter into a securities loan agreement to provide AIG with additional liquidity of $37.8 billion. AIG announces the execution of a credit contract for an $85 billion credit facility. American International Group Inc. announced that it has entered into a reinsurance contract covering many of the long-term risks associated with previously written commercial insurance policies. On the closing date of the recapitalization, the New York Fed`s revolving credit facility was fully repaid, including interest and fees; The agreement and the loan commitment have been terminated; and all remaining preferred shares of the AIA and ALICO special vehicles are either cashed in by AIG or purchased and transferred to the U.S. Treasury. AIG announced an agreement with the U.S.
Treasury, the New York Fed and the directors of AIG Credit Facility Trust on a comprehensive recapitalization plan to repay all of its obligations to U.S. taxpayers. Measures include an acceleration of repayment and a halt to the New York Fed`s credit facility, the acquisition by the United States of the majority of the New York Fed`s shares for special purposes AIA and ALICO.