AIG boss: We’ll wait till the price is right
Posted on August 28, 2009 at 12:23 pmNew American International Group CEO Robert Benmosche says the insurance giant will take its time selling various divisions — including American General, which employs 1,000 in Brentwood.
“That kind of price talk is ridiculous,” he said, without specifying what he considers a fair price. “I’ve told the government that if we have to sell them right now, we may not be able to pay back what we owe.”
That’s the kind of talk AIG investors have quickly come to like: Shares of the company (TIcker: AIG) have more than tripled since he took the helm less than a month ago.
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New boss over local AIG unit
Posted on August 20, 2009 at 2:42 pm
The reorganizing American International Group has created a new leadership post for its U.S. life and retirement divisions — which includes Brentwood-based American General Life & Accident — and named 10-year company veteran Jay Wintrob to fill it.
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AIG to spin off two more units
Posted on June 25, 2009 at 8:21 am
The government is trading part of the debt extended to American International Group last fall for preferred equity in two of the insurer’s subsidiaries. AIG plans to take American International Assurance Co. and American Life Insurance Co. public and raise more capital after that. There’s still no word on the future of AIG’s American General division, which employs hundreds in Brentwood.
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AIG boss walking
Posted on May 22, 2009 at 1:05 am
Ed Liddy has told the insurer’s board he is out as soon as his chairman and CEO roles are filled by two different people.
I am proud that we are now implementing this repayment plan. As we all know too well, our pace of success will depend on global economic conditions and financial markets. It is likely to take several years. All of you should have a leadership team committed to a similar time horizon and prepared to carry the plan to completion.
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AIG chief: Rebuilding company could take till 2014
Posted on May 13, 2009 at 2:44 pm
Testifying before a House committee, Edward Liddy says the fallen insurance giant and owner of Brentwood’s American General has a long way to go to clear up its corporate structure.
“We must take the time and exercise the diligence to do this restructuring properly,” Mr. Liddy told lawmakers. “Let me be clear — our plan is explicitly designed to avoid having to divest A.I.G. assets at fire-sale prices.”
…
In a recent memo to A.I.G. employees, Mr. Liddy said the company had developed a restructuring plan called “Project Destiny” that entails either spinning off many of the insurance subsidiaries, either by selling them to other companies or by turning them into independent companies and selling minority stakes through in public stock offerings.
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More AIG bonuses we didn’t know about
Posted on May 6, 2009 at 12:52 pmResponding to lawmakers’ questions, the insurance giant has disclosed for the first time that it paid out more than $450 million in 2008 performance bonuses.
The payments are in addition to an about $120 million corporate bonus pool designated for holding company employees and executives at subsidiary companies. The performance bonus plans for the various AIG units were set before the company teetered on the brink of bankruptcy, forcing them to take government aid last September.
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Worst year in Fortune 500 history
Posted on April 20, 2009 at 10:04 amFrom CBS:
From $645 billion in profits in 2007, profits dropped this year to just $98.9 billion - an 84.7 percent decline!
Records were broken: Eleven of the top 25 largest corporate losses in list history took place last year.
The biggest loser of them all: Insurance giant AIG. The company posted a $99.3 billion loss. But it’s still on the list (”too big to fail” indeed!). It’s ranked at number 245, down from number 13 just one year earlier.
Thirty-eight companies disappeared from the list altogether. Bear Stearns and Lehman Brothers may be no surprise, but it was also “last call” for brewer Anheuser Busch.
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Is American General next?
Posted on April 16, 2009 at 6:14 pmYou would think the Brentwood-based AIG unit is in line to find a buyer soon now that the conglomerate has hooked up with Zurich for its auto insurance unit. That makes five deals and a few more to come.
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Guv candidate: Local AIG group lost $1B
Posted on April 12, 2009 at 10:56 pmWard Cammack knows this because he and a partner looked at buying American General’s Brentwood division. But the losses sustained due to an asset-lending program designed to goose returns ended that conversation.
From a Cammack blog post:
Maybe AIG should have voluntarily disclosed the details of how the collateral from the asset lending program was invested. The fact that the AIG Tennessee subsidiary was involved in asset lending was artfully hidden in a two-page note to their financial statements. Contrast that to the required disclosure of their invested assets. Each asset is individually detailed in their annual statement, so that policy holders, investors, regulators, and employees can know exactly what the risks are from those investments.
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Why AIG had to pay bonuses
Posted on March 23, 2009 at 7:26 am
The New York Post goes digging into AIG’s regulatory filings and finds that more than $1 trillion in credit default swaps and mortgage-based securities would have gone into default had the insurer canceled its bonus contract.
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AIG? Who’s that?
Posted on March 19, 2009 at 1:43 pm
AIG in Nashville will be going the WorldCom route attempting to rebrand themselves to escape their tainted image.
Within one month a new sign on the building featuring a new name, AGLA, will replace the one that until this week read AIG American General.
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Leaving open the door to a fourth bailout
Posted on March 2, 2009 at 7:11 amAIG is breaking itself up in order to get a $30 billion backstop from the government. But the insurance giant – whose market cap is now roughly the same of that of Tractor Supply – isn’t ready to stand on its own just yet.
“The long-term solution for the company, its customers, the US taxpayer, and the financial system is the orderly restructuring and refocusing of the firm,” the Treasury and the Fed said in a joint statement. “This will take time and possibly further government support, if markets do not stabilise and improve.”
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No end in sight for AIG
Posted on February 24, 2009 at 8:11 amA report says the insurance giant – which is trying to sell American General, the employer of almost 1,000 people in Brentwood – may report a $60 billion loss this quarter and is talking with the government about getting more aid. The company already has taken in $150 billion in taxpayer funds.
The woman in charge of selling AIG
Posted on February 10, 2009 at 7:25 amBloomberg’s Zachary Mider and Hugh Son deliver a close-up of Paula Reynolds, who is overseeing the dismantling of American International Group, a process that will include the sale of American General, which employs about 1,000 people in Brentwood. Good times.
AIG couldn’t have picked a worse time to be a seller. Most potential buyers are hobbled by the global credit crisis, and those that aren’t would rather conserve capital than gamble it on a big acquisition.
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An IPO for American General?
Posted on February 1, 2009 at 10:41 amUnable to find buyers, AIG is considering splitting off some of its units and selling their shares to the public.
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