NEW YORK (Bloomberg) — Travelers Cos., the second-biggest US commercial insurer, and Ace Ltd. advanced on speculation they may win new customers as American International Group Inc. struggles to raise capital.

Travelers rose 35 cents to $45.40 at 11:58 a.m. in New York Stock Exchange composite trading. Ace, the Bermuda-based business insurer, gained $1.73 to $53.88, while AIG dropped 66 percent to $4.07, extending last week's 46 percent plunge.

AIG, seeking to raise $20 billion in capital and sell $20 billion of assets, sought a $40 billion bridge loan from the Federal Reserve to stave off credit downgrades, the New York Times reported, citing an unnamed person. New York-based AIG reported three quarterly losses totaling $18.5 billion. Travelers, based in Hartford, Connecticut, had about $3 billion in profits in that period.

"It may have been unthinkable as recently as a week ago, but large corporate clients may suddenly be thinking twice about placing their cover with AIG," KBW Inc. analyst Clifford Gallant said today in an interview. "That's an opportunity for a Travelers or an Ace."