Last year at this time, buyers needed a lot of hand-holding before they were comfortable placing or keeping their business with AIG carriers after credit default swaps nearly destroyed the parent company. This year, all seemed to be forgiven–at least until this latest news.

AIG's new top dog, Chief Executive Officer Robert Benmosche, may yet step up and refute this damning report, or at least place its conclusions in a less problematic context for skittish buyers.

But even if further explanation is forthcoming from AIG, this renewal season has become very intriguing for the company, because this wasn't the first pothole AIG hit recently on its road to recovery.

There remain questions about AIG's long-term leadership after reports that Mr. Benmosche, unhappy about meddling by Uncle Sam with his executives' pay, might take a hike. While he later reassured employees he is committed to the company, you've got to wonder about his staying power, especially after a harsh story in the Nov. 22 edition of New York magazine.

The piece reported on how Kenneth Feinberg, special master for TARP executive compensation at the U.S. Treasury, tore into Mr. Benmosche and the AIG board when summoned to defend his limits on executive pay. He was quoted as declaring, "You guys just don't get it."

Mr. Feinberg reportedly lectured the board about how AIG wouldn't be here without a taxpayer bailout, and that huge salaries for those at firms supported by public funds would simply not survive popular outrage.

On a far more positive note, AIG finally buried the hatchet with its former boss, Maurice Greenberg, who agreed to settle all remaining disputes between he, AIG and his business entities, including Starr International Company and C.V. Starr & Company.

Under the deal, the parties will go to arbitration to settle Mr. Greenberg's claims for reimbursement of "reasonable" legal fees and expenses, with AIG paying no more than $150 million. That means the only winners in this ugly brawl will be the attorneys involved.

The deal sets the stage for a long-rumored, triumphant return by Mr. Greenberg to AIG–although most likely in an advisory role. "I look forward to assisting AIG in trying to preserve and restore as much value as possible for all of AIG's stakeholders," he said.

The peace treaty also grants Mr. Greenberg access to AIG's archives for material to help him pen his memoirs. That should be an interesting read, with his closing chapter at AIG perhaps yet to come.