Steven Wevodau AIG
NEW YORK–(BUSINESS WIRE)–Frank G. Wisner, Vice Chairman, External Affairs, has announced his plans to retire from American International Group, Inc. (AIG).Ambassador Wisner, 70, joined AIG in 1997 and served on the Board of Directors from 1997 until 2003. Before coming to AIG, Ambassador Wisner had retired from the U.S. government with the rank of Career Ambassador, the highest grade in the Foreign Service. He joined the State Department in 1961 and served in a variety of overseas and Washington positions during his 36-year career. Among his other posts, Ambassador Wisner served successively as U.S. Ambassador to Zambia, Egypt, the Philippines and India. Prior to his posting in New Dehli in 1994, he was Under Secretary of Defense for Policy. Before that position, he was Under Secretary of State for International Security Affairs.
Commenting on Ambassador Wisner’s retirement, AIG Chairman and Chief Executive Officer Edward M. Liddy said, “Throughout his tenure with AIG, Frank Wisner brought his deep knowledge of international affairs and public policy to AIG’s businesses in vibrant markets throughout the world. On behalf of all AIG colleagues who have benefited from his many contributions and tireless leadership over the years, we wish Ambassador Wisner the very best in the future.”
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
Contact:
AIG
Joe Norton, 212-770-3144
Director of Public Relations
Source: American International Group, Inc.
Tags: AIG, Steve Wevodau AIG, Steven Wevodau AIG
Posted by Steven Wevodau
By Kate Burgess and Andrea Felsted
Published: January 23 2009 23:16 | Last updated: January 23 2009 23:16
Some leading shareholders in Prudential are becoming increasingly nervous about the UK life assurer acquiring large chunks of American International Group.
The Pru is among the insurers expected to receive limited sales information on a minority stake in American International Assurance, AIG’s Asian life assurance business.
Some institutional investors are worried about how the Pru would fund a $20bn (£14.5bn) deal.
The Pru has been talking to outside investors about funding a deal and has found serious interest. But some investors fear a rights issue.
“It is pretty much an open secret that the Pru wants to do a deal. And some of the AIG assets are very attractive. They could do a rights issue to fund it,” one investor said.
“We know the Pru is interested in the AIG business but we dread the call,” said another.
A third investor said it was unlikely that shareholders would back a rights issue, but “the shares might be re-rated if it sold the UK business”.
An alternative that some shareholders might find more palatable would be for the Pru to offload the UK policies on its books to Clive Cowdery, the insurance entrepreneur. However, this would be a multibillion-pound deal and some question whether Mr Cowdery’s Resolution would have the capacity.
Prudential declined to comment.
But people familiar with the situation said the Pru had not received any expressions of concerns from shareholders, nor had it been sounding them out.
It was premature to talk about funding given the early stages of the auction, they said.
Last month Tidjane Thiam, finance director, told the Financial Times the Pru would do a deal only if it could be funded. The company would not do anything that would be harmful to shareholders, he said.
Copyright The Financial Times Limited 2009
Tags: AIG, Prudential, Steve Wevodau AIG, Steve Wevodau Prudential, Steven Wevodau AIG, Steven Wevodau Prudential
TSC Staff
01/20/09 - 04:54 AM EST
Win Neuger, the executive in charge of American International Group’s(AIG Quote - Cramer on AIG - Stock Picks) investment operation will step down from his post and focus on a narrower role as the unit he will head is readied for sale, the Wall Street Journal reports.
An announcement is expected in coming days that Neuger, who has been the insurer’s chief investment officer for years, will leave that job, the Journal reports, citing people familiar with the matter.
Neuger will continue to oversee AIG’s business of managing assets for external clients such as pension funds, which the firm is putting up for sale. Neuger will keep his titles as chief executive and chairman of AIG Investments, the newspaper reports.
Neuger said in an email that he isn’t taking a narrower role but that the sale of the asset-management business necessitates all investment personnel moving to one side of the business or the other, according to the Journal. He said he was the founding CEO of that business and it would no longer be possible for one person to fill both roles once it is sold.
AIG, once the world’s largest insurer, is in the process of liquidating assets to repay a loan of $60 billion, which is part of a $150 billion bailout from the federal government that has helped the insurer avert bankruptcy..
Tags: AIG, Steve Wevodau AIG, Steven Wevodau AIG
posted by Steven Wevodau
AIG to sell Canadian life insurance unit to Canada’s Bank of Montreal for $308 million
CHARLOTTE, N.C. (AP) — American International Group Inc., which received a massive cash infusion last year from the U.S. government, said Tuesday it is selling AIG Life Insurance Company of Canada to the parent of the Bank of Montreal for about $308 million in cash.The deal is part of the New York-based insurance giant’s restructuring plans and is expected to close by June 1.
AIG Life of Canada, based in Toronto, sells insurance and retirement savings products, including universal and term life plans, critical illness plans and annuities. The company sells its services through more than 5,000 agents across Canada.
“Acquiring AIG Life of Canada will strengthen BMO’s overall financial planning, wealth and retirement offering, giving us the ability to expand our client relationships through a comprehensive line up of products,” Bill Downe, president and chief executive of Toronto-based BMO Financial Group said in a statement.
BMO Financial said it will take on AIG Life of Canada’s 300 employees and 400,000.
In November, the U.S. government gave AIG a $150 billion rescue package to help the company pull through the credit crisis. That package replaced an earlier loan of $85 billion after it became apparent the insurer needed more funds.
AIG said in October it would sell off a number of business units to repay the original $85 billion government loan.
The company has not specifically disclosed the assets it would sell or the expected prices from the sales. However, AIG has said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and plans to retain an ownership interest in its foreign life insurance operations.
As of Dec. 22, AIG had already sold interests in four businesses, and earlier in the month was said to be in the final stages of selling its U.S. personal lines business.
Shares of AIG rose a penny to $1.55 in morning trading Tuesday, while BMO Financial fell 18 cents to $26.77.
Tags: AIG, Steve Wevodau AIG, Steven Wevodau AIG
The de-leveraging process rolls on. Now AIG wants permission from the government to take paper in lieu of cash as it sells off assets, since cash is, well, not all that available lately. It’s a good idea, in any event.
Given where just about every kind of security, other than Treasuries, is lately trading, paper will likely end up being better than cash in the end. Assuming—and this is a big if—AIG can actually get some deals done. . . .
Tags: AIG, Insurance Property & Casualty Insurance News, Steve Wevodau AIG, Steven Wevodau AIG
The Washington Post (from Bloomberg News) “With Fed’s Help, AIG Unloads $16 Billion in Credit Default Swaps” reports that American International Group (AIG) retired another $16B face value of credit default swaps for $6.7B by purchasing the underlying securities and canceling the contracts. The insured (counterparties) were able to keep the more than $9B in collateral that AIG posted. The counterparties were taken out at par. So far, the Fed’s Maiden Lane III special purchase fund has purchased $62.1B face value of CDOs from AIG’s counterparties. The Fed has committed to purchase up to $70B face value of CDOs from AIG’s counterparties at roughly 50% of par. Each time the Fed is allowing the counterparties to keep all collateral.
Why has the Fed completely removed the risk of AIG as a counterparty in CDS transactions? Perhaps the Fed views moral hazard as a foreward-looking constraint and AIG is just trying to unwind past regrettable activities. More likely the Fed is viewing AIG as a conduit to funnel capital into favored financial institutions. By forcing counterparties to sell the underlying CDO securities in order to receive full recovery, the Fed is liquidating toxic assets and preventing pure speculators from participating. But by paying close to par, when posted collateral is included, the benefit of price discovery is missing.
AIG told shareholders that the Fed would negotiate the CDO purchases on AIG’s behalf and AIG’s participation in any price appreciation would be limited. The implication was that the Fed would use its strength to be an advocate for AIG. Quite the opposite turned out to be true. Instead the Fed used its strength to force a weakened AIG to make whole its stronger counter parties.
Let’s compare AIG’s “loss mitigation” on credit insurance with the monolines. Ambac (ABK) and MBIA (MBI) and others have commuted some of worst CDS and continue to negotiate the remainder. The transactions were always under par and the counterparties always retained the underlying CDOs. Collateral posted was always included as part of the price. The monolines still retained the right to recover their losses from the mortgage originators. The key difference is that negotiations led by New York Insurance Superintendent Eric R. Dinallo always held out the monolines’ solvency and the possibility of rehabilitation (receivership) as a risk. Counterparties had to consider that some payment was better than no payment.
The New York Insurance Superintendent clearly strengthened Ambac and MBIA in the negotiations to commute CDO policies, while the Fed’s efforts on AIG’s behalf are questionable. If the Fed had AIG’s best interest at heart, they would have simply reinsured AIG for a fee. Instead, the Fed is contriving one way after another to profit from and execute policy objectives through AIG. AIG has become the Fed’s Fannie Mae (FNM) and Freddie Mac (FRE). The Fed keeps pushing AIG to the brink. If they go too far, the Fed will lose its 79.9% investment, and might not even get paid back.
As pure speculation, I think that the government’s relationship with AIG will change under President Obama. The Fed and Treasury created a multitude of opaque programs which on the surface appear to follow the free market mantra of President Bush. In January, true agendas will no longer have to be hidden and strengthening AIG, Fannie and Freddie as independent companies and large employers could be objectives. All three need to be viable, publicly traded stocks as an incentive to keep their best employees. While Paulson and Bernanke spoke of public mission superseding shareholder benefits, I believe that Obama understands that is not a viable path forward.
Tags: AIG, Steve Wevodau AIG, Steven Wevodau AIG
NEW YORK–(BUSINESS WIRE)–American International Group, Inc. (AIG) announced today an agreement to sell its wholly owned subsidiary HSB Group, Inc. (HSB), to the Munich Re Group. HSB, the parent company of The Hartford Steam Boiler Inspection and Insurance Company, is a leading worldwide provider of equipment breakdown and engineered lines insurance and reinsurance.Under the terms of the transaction, Munich Re will acquire 100% of the outstanding shares of HSB Group for $742 million in cash and assume $76 million of outstanding HSB capital securities.
The transaction, which is expected to close at the end of the first quarter of 2009, is subject to satisfaction of certain conditions, including approvals by appropriate regulatory authorities.
“Munich Re offers HSB new opportunities to grow our business profitably and expand our offerings in North America and globally,” said Douglas G. Elliot, President and Chief Executive Officer of HSB Group, Inc. “With Munich Re’s outstanding financial strength behind us, we can offer our clients the reassurance that they’re looking for in today’s uncertain market environment,” he added.
Elliot and his senior management team will remain with HSB. He will report to Anthony J. Kuczinski, Chief Executive Officer of Munich Re America.
“We extend a warm welcome to the clients and employees of HSB,” Mr. Kuczinski said. “HSB has built a tremendous reputation for underwriting highly technical machinery and engineering risks. We believe the strong underwriting culture of HSB and the company’s exceptional client focus makes it an excellent fit for Munich Re. We believe Munich Re’s clients will greatly value the addition of HSB’s products and services.”
Paula R. Reynolds, Vice Chairman and Chief Restructuring Officer of AIG, said: “The sale of HSB signals that AIG’s restructuring effort is gaining momentum. HSB is a singular business with outstanding performance, and we are pleased to reach agreement with an industry leader in Munich Re. The transition in ownership should be seamless for HSB agents, customers and employees.”
“The acquisition of HSB is a perfect fit for our US strategy: It is another step in developing our position in high return specialized niche segments. This is one of the declared aims of our Changing Gear program for profitable growth,” said Peter Röder, Munich Re Board member responsible for US business.
“This is a very good opportunity for HSB, its clients, and employees,” said Richard H. Booth, chairman of HSB Group, Inc. “Munich’s strong global capabilities provide a solid growth platform for HSB’s products and services.”
ABOUT AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
ABOUT HSB GROUP
HSB Group, Inc., the parent company of The Hartford Steam Boiler Inspection and Insurance Company, is a leading worldwide provider of equipment breakdown and engineered lines insurance. Hartford Steam Boiler provides a range of specialty insurance coverages for business, home and farm. One of the world’s leading equipment breakdown insurers, HSB helps clients reduce risk through a unique combination of specialty coverages, engineering-based risk management strategies and loss reduction services. For more information about HSB visit its Web site at www.hsb.com.
ABOUT MUNICH RE GROUP
The Munich Re Group operates worldwide, turning risk into value. In the financial year 2007, it achieved a profit of €3,937m, the highest since the company was founded in 1880, on premium income of approximately €37bn. The Group operates in all lines of business, with around 43,000 employees at over 50 locations throughout the world and is characterized by particularly pronounced diversification, client focus and earnings stability. With premium income of around €21.5bn from reinsurance alone, it is one of the world’s leading reinsurers. More about Munich Re can be found at www.munichre.com.
ABOUT MUNICH RE AMERICA
Munich Re America Corporation, a member of the Munich Re Group, offers superior capacity to meet clients’ risk-transfer needs. Munich Re America has $4.1 billion in statutory surplus and $17.0 billion in high-quality assets to provide our clients with outstanding balance sheet strength, stability and the liquidity to pay claims promptly. Munich Reinsurance America offers a full range of property and casualty coverages through multiple distribution channels. Primary program insurance products are available through affiliated operations: American Alternative Insurance Corporation (an admitted insurer in all fifty states) and the Princeton Excess and Surplus Lines Insurance Company (authorized to write business in 50 states and the District of Columbia), and American Modern Insurance Group. More about Munich Re America products and services can be found at www.munichreamerica.com.
Contact:
American International Group, Inc.
David Monfried, Restructuring Communications, 212-770-7205
david.monfried@aig.com
or
HSB Group, Inc.
Dennis Milewski, 860-722-5567
Dennis_Milewski@HSB.com
or
Munich Re Group
Johanna Weber, +49 (0) 89 38 91-26 95
jweber@munichre.com
or
Munich Re America, Inc.
Terese Rosenthal, 609-243-4339
Fax: 609-951-8201
trosenthal@munichreamerica.com
Source: American International Group, Inc.
Tags: AIG, American International Group, Munich Re, Property & Casualty Insurance News, Steve Wevodau AIG, Steve Wevodau Munich Re, Steven Wevodau AIG, Steven Wevodau Munich Re
By Lilla ZuillNEW YORK (Reuters) - American International Group Inc (NYSE:
AIG -
News) Chief Executive Edward Liddy has asked for more time before meeting with U.S. Rep. Elijah Cummings, who has been critical of the insurer and management in recent weeks.
“Given the breadth of your inquiries to date, and our parallel commitment to make certain we provide you with thorough answers … it is in everyone’s best interest to re-schedule the meeting that is on the calendar for tomorrow, December 18,” Liddy wrote in a letter dated December 17 that was seen by Reuters.
In a return letter to Liddy on Thursday, Cummings said AIG’s last-minute postponement was “stonewalling” and similar to “stall tactics” he had seen others make to Congress.
“Please rest assured that neither I nor my colleagues in Congress will relent until we get answers … and until we have full transparency into the operations of your company,” said Cummings.
Cummings, a Maryland Democrat, has sent four other letters to AIG in the past five weeks, and in numerous media appearances has been critical of some of its practices, most notably its plans to pay retention bonuses to thousands of staff.
AIG has said the payments are designed to limit departures after the company posted $42.5 billion in losses over the past four quarters, putting it on the verge of collapse.
AIG was saved by a U.S. government bailout in September that last month ballooned to about $152 billion.
Cummings argues that with so much taxpayer money at stake, AIG has no right to pay any type of bonus to staff, and has called for Liddy’s ouster.
Liddy, a former Allstate Corp (NYSE:ALL - News) CEO, joined AIG three months ago, at the time of the government’s initial rescue. He is the insurer’s third CEO in as many years.
In his letter, Liddy chided Cummings for the personal nature of his attacks on AIG.
“While all of us who hold senior positions of responsibility are accustomed to fair debate in the court of public opinion, I am deeply concerned that our collective effort to save AIG and make the facts known have degenerated into a personal attack on me,” said Liddy, noting that he has accepted a $1 annual salary.
(Reporting by Lilla Zuill; editing by Jeffrey Benkoe)
Tags: AIG, American International Group, Steve Wevodau AIG, Steven Wevodau AIG
By Judy Greenwald
Dec. 04, 2008
NEW YORK—A state judge on Wednesday refused to dismiss charges, including breach of fiduciary duty, against former American International Group Inc. chairman Maurice R. Greenberg and others in a battle with AIG for control over shares of the insurer.
The focus of the dispute is a special block of AIG shares that was worth about $20 billion in 2005. Those shares had been used to fund an incentive compensation plan for AIG employees and had been held by Starr International Co. Inc., which is now controlled by Mr. Greenberg.
Supreme Court Justice Charles E. Ramos refused a motion to dismiss several claims brought by AIG in the dispute, including breach of fiduciary duty claims against Mr. Greenberg and former AIG chief financial officer Howard I. Smith.
“Ultimately, whether Greenberg and Smith properly discharged their duties of loyalty to AIG while simultaneously serving as SICO directors will require a fact-intensive assessment of their conduct, not properly disposed of at the pre-answer stage,” Judge Ramos said in the decision.
He also refused to dismiss a charge of breach of fiduciary duty against all defendants and a claim of aiding and abetting breach of fiduciary duty, among other charges. The judge held that AIG had sufficiently presented its claims to allow them to proceed.
In June, in a parallel federal case, U.S. District Court Judge Barbara S. Jones granted Starr’s motion to dismiss four of AIG’s charges, including breach of contract, but denied its bid to dismiss three others, including breach of fiduciary duty and trust.
On Nov. 6, Judge Ramos had denied motions to stay the state action pending resolution of the federal case.
An AIG spokesman said, “We are pleased with the court’s decision.”
Mr. Greenberg’s attorney, Chris Duffy of Boies, Schiller & Flexner L.L.P. in New York, said in a statement: “In light of the economy and AIG’s health as a company, it’s curious that AIG is using litigation to try to expand the bonus pool for its top executives.…Today’s decision is purely procedural and made no final findings.”
Tags: Steve Wevodau AIG, Steve Wevodau Greenberg, Steven Wevodau AIG, Steven Wevodau Greenberg