American International Group has raised the limits on its environmental insurance policies to meet increased exposures.
The New York-based underwriter now will insure against losses of up to $100 million instead of the old limit of $70 million.
The change affects six products, including the Secured Creditor Impaired Property Policy, which is being sold by First Union Corp. That product protects lenders when an environmental problem leads to the default of a commercial loan or collateral difficulties.
The increase was needed to meet the rising costs associated with environmental exposures, AIG said. The company is the leading U.S. provider of environmental insurance products. It has underwritten pollution coverage since 1979.
AIG, a power in the retirement products business, completed a merger with SunAmerica Inc. on Jan. 1. The SunAmerica deal gives AIG a leg up in the variable annuities industry.