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AIG Collapse Poses Risks to Carnival

OhioJeff

By OhioJeff,
in Carnival Cruise Lines

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hbrote

hbrote

Posted
Posted

Here is some text from Kiplinger.

 

AIG has several different businesses, and only some of them deal with insurance. Those insurance subsidiaries are subject to different rules from the rest of the company. The state insurance departments set strict capital requirements to make sure insurers can pay claims. As a result, those subsidiaries are not suffering from the same financial troubles as other parts of the company.

"The insurance subsidiaries are solvent and able to pay their obligations," says Sandy Praeger, president of the National Association of Insurance Commissioners.

 

Hope this help came some fears...

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Pupsweet

Pupsweet

Posted
Posted

I don't think it means anything.

 

We just booked AIG Travel Guard KNOWING about all this. It's not stopping me from what is still the best policy for our needs. I compared to everyone else at insuremytrip.com, and I know why we've used them on every other cruise. They work best for me.

 

Disclaimer: No, I don't work for AIG. :D

 

Hope we won't ever need to find out if it'll work or not!

 

I'm not worried.

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tally10

tally10

Posted
Posted

We have used AIG trip insurance for our last two cruises and the claims have been handled very nicely. Hubby was sick with pneumonia and noro. We took it again for our Oct. 25th Freedom cruise in the mediterranean and hopefully we won't need it. We did see an article explaining why AIG Travelguard is not going to be effected by all of these current problems (thank goodness).

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mamasue

mamasue

Posted
Posted
I don't think it means anything.

 

We just booked AIG Travel Guard KNOWING about all this. It's not stopping me from what is still the best policy for our needs. I compared to everyone else at insuremytrip.com, and I know why we've used them on every other cruise. They work best for me.

 

.

 

I agree about it seeming to be the best policy.... the fact that they give primary health cover, not secondary... and for a great price!!

 

If it is available for our next cruise, I would definitely use them again

 

And no.... I don't work for them either!!!:)

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Quincella

Quincella

Posted
Posted
At the absolute worst case it means Carnival might have to cough up $170 million in collateral to keep 3 of their ships from getting repossessed.

 

Yes, but seriously....what would one do with a repossessed ship? Sell it in a yard sale? :rolleyes: It's not like there is any other line drowning in money that would want the ships. I don't think there's any danger here.

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trock

trock

Posted
Posted
Yes, but seriously....what would one do with a repossessed ship? Sell it in a yard sale? :rolleyes: It's not like there is any other line drowning in money that would want the ships. I don't think there's any danger here.

 

 

If they purchased some of the subprime mortgages, they can put up the people who are foreclosing on their homes...;)

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viciouslysh

viciouslysh

Posted
Posted
I don't think it means anything.

 

We just booked AIG Travel Guard KNOWING about all this. It's not stopping me from what is still the best policy for our needs. I compared to everyone else at insuremytrip.com, and I know why we've used them on every other cruise. They work best for me.

 

Disclaimer: No, I don't work for AIG. :D

 

Hope we won't ever need to find out if it'll work or not!

 

I'm not worried.

 

I did the same

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Quincella

Quincella

Posted
Posted
If they purchased some of the subprime mortgages, they can put up the people who are foreclosing on their homes...;)

 

My mortgage is not subprime, but I'll volunteer to give up my house as long as i can have a permanent suite and the employees still work there!!!!

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Tapi Great Review Rare

Tapi

Posted
Posted
At the absolute worst case it means Carnival might have to cough up $170 million in collateral to keep 3 of their ships from getting repossessed.

 

 

Considering that Carnival made over $1 BILLION in NET revenue in 2006, and around $750 million in 2007, I doubt that they will have trouble coming up with $170 million if they needed to...

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SpacemanSpiff

SpacemanSpiff

Posted
Posted
Yes, but seriously....what would one do with a repossessed ship? Sell it in a yard sale? :rolleyes: It's not like there is any other line drowning in money that would want the ships. I don't think there's any danger here.

 

Maybe it could be a ghost ship, since it was.... re-possessed?!??

 

 

<rimshot>

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gtalum

gtalum

Posted
Posted
Considering that Carnival made over $1 BILLION in NET revenue in 2006, and around $750 million in 2007, I doubt that they will have trouble coming up with $170 million if they needed to...

 

I'm sure Carnival can come up with it if they have to, but it would be painful. $1 Billion in revenue is not $1 Billion in profit. They might even have to sell a ship if they had to cough it up, since financing is so tight.

 

Fortunately that's the worst-case scenario and not very likely.

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