American International Group's share price fell by a record 19 percent yesterday - the US insurer's biggest plunge in its 39-year history as a public company.

The $4.39 fall to $18.37 on the New York Stock Exchange came after doubts were raised about the ability of Lehman Brothers to raise capital and the investment bank's stock plumeted 45 percent, thereby clouding AIG's chances of raising new capital itself.

Bermuda insurers also pared the gains most enjoyed on Monday, with Allied World, Primus Guaranty and XL capital all falling more than five percent.

Read more on Page 23