In the following video, Motley Fool financial analyst Matt Koppenheffer discusses AIG's (NYSE: AIG ) fourth quarter earnings, and what the company meant when it reported that it had "prior year adverse development." He tells investors that the company has a trend when it sets aside money to deal with losses from previous years, to not set enough aside. Matt tells us why he doesn't like to see this, and points to two much more conservative insurers that he prefers, who always have more set aside than they need.
After bringing the financial world to its knees, most investors are wary about owning a stake in AIG today. We'll fill you in on both reasons to buy and reasons to sell AIG, and what areas AIG investors need to watch going forward. Just click here now for instant access.