American International Group’s Chairman Maurice “Hank” Greenberg appeared to confirm earlier reports that the company will not be renewing insurance coverage on the properties of New York’s high-profile developer Donald Trump.
Trump, who controls office buildings, hotels, casinos and other properties in New York and New Jersey, had earlier indicated that despite his longstanding relationship with AIG he would probably move coverage on his properties to other companies who had offered him more favorable terms. He also expressed dissatisfaction with AIG’s handling of some of his policies, complaining about its services and rates.
Greenberg indicated that prior to that statement AIG had never been informed by either Trump or his insurance brokers of any problems with its rates or services. The company had said earlier, however, that it had refused to participate in a $475 million offering of debt securities by Trump Hotels and casinos, as it did not find the terms of the bonds offered to be satisfactory. AIG observed that its refusal might have influenced Trump’s decision. He has denied that this was a consideration.
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