May 3 (Bloomberg) -- American International Group Inc. said it started a new portfolio of bonds at the parent company in the first quarter as the insurer cuts holdings of cash and short term investments.
“We initiated an investment program at the holding company whereby we invested $2.3 billion of available cash into high quality fixed-maturity securities, with a duration of just over three years, and a yield rate of just over 1 percent,” Chief Financial Officer David Herzog said on a conference call today. “We expect this portfolio to grow to around $3 billion this year.”
To contact the reporter on this story: Zachary Tracer in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Kraut at email@example.com