“Hancock’s troubles began in 2015, when billionaire activists Carl Icahn and John Paulson began building stakes and later acquired board seats.”
As acknowledged below, AIG’s and Hancock’s trouble began decades ago:
“Hancock’s resignation plans were announced shortly after AIG reported an unexpectedly wide loss on Feb. 14, saying the company had underestimated for years the claims it would have to pay for a variety of insurance products.”
AIG has been under-pricing their business and the resultant losses from that poorly priced business since the late 1980’s. All those chickens are coming home to roost. The losses will continue to roll in as the measures taken so far have not been strong enough and business written in the past 5 years will continue to drain on their results as the 25 years before that have. And there is little that Brian Duperreault or any other CEO can do to stop it. As soon as the Titanic initially contacted the iceberg, there was nothing that could have been done to save it.
What’s Hank Greenberg doing these days? I’m just asking. :)
Still running Starr.
Below statement is not quite true:
“Hancock’s troubles began in 2015, when billionaire activists Carl Icahn and John Paulson began building stakes and later acquired board seats.”
As acknowledged below, AIG’s and Hancock’s trouble began decades ago:
“Hancock’s resignation plans were announced shortly after AIG reported an unexpectedly wide loss on Feb. 14, saying the company had underestimated for years the claims it would have to pay for a variety of insurance products.”
AIG has been under-pricing their business and the resultant losses from that poorly priced business since the late 1980’s. All those chickens are coming home to roost. The losses will continue to roll in as the measures taken so far have not been strong enough and business written in the past 5 years will continue to drain on their results as the 25 years before that have. And there is little that Brian Duperreault or any other CEO can do to stop it. As soon as the Titanic initially contacted the iceberg, there was nothing that could have been done to save it.
Funny thing Dave. I seem to remember the first big trouble with AIG being the Bid Rigging scandal with Marsh some years ago.
This big market thug has been overbearing for a very long time. Yes, Hank Greenberg was in charge for many of those years.