Much of this article is typical CEO spin about how things will get better, and that recent bad results were due to cats, etc. The first thing that stands out is the general insurance claim reserve release of $104M, which is small relative to their entire reserve balance. Also, the exit from certain risks in excess casualty shows their reluctance to take on higher return / higher risk portfolios… at this time. I assume the book they will shed is a by-product of ‘long ago AIG employee underwriting managers’ or a lack of attention to their XS casualty book mix by their CUO. I assume this higher risk for higher reward underwriting may be more carefully monitored in the future due to an actuary CEO at the top of AIG instead of an underwriter or CPA/ Finance pro.
If I were an AIG stockholder or ‘stakeholder’, I’d ask more focused questions (along the lines discussed above) at quarterly SH conferences/meetings on the changes to monitoring books of insurance risks and portfolios of CDOs, stocks, bonds, etc.
A lot of my mentors were caught up in the “Returning of $25B to shareholders in 3 years” deal a few years ago. Hancock and friends really ran this fine company into a ditch. There are very profitable portions of AIG still around. The looseness of u/w on certain lines is coming home to roost. I wish my former colleagues luck as you are all good people. I’m sure AIG will pull out of this…
AIG used to make most of their profits from their life insurance sales in Asia, which was how they started. Once they sold that cash cow, the AIG model has not looked so profitable, and their wheeler dealer days are numbered………
AIG has been a thug company for a long time. Anyone remember big rigging? Then they had to be bailed out by the taxpayers for all their other nefarious dealings. I have no sympathy for them at all.
Much of this article is typical CEO spin about how things will get better, and that recent bad results were due to cats, etc. The first thing that stands out is the general insurance claim reserve release of $104M, which is small relative to their entire reserve balance. Also, the exit from certain risks in excess casualty shows their reluctance to take on higher return / higher risk portfolios… at this time. I assume the book they will shed is a by-product of ‘long ago AIG employee underwriting managers’ or a lack of attention to their XS casualty book mix by their CUO. I assume this higher risk for higher reward underwriting may be more carefully monitored in the future due to an actuary CEO at the top of AIG instead of an underwriter or CPA/ Finance pro.
If I were an AIG stockholder or ‘stakeholder’, I’d ask more focused questions (along the lines discussed above) at quarterly SH conferences/meetings on the changes to monitoring books of insurance risks and portfolios of CDOs, stocks, bonds, etc.
that’s a lot of assumptions you are making there buddy
A lot of my mentors were caught up in the “Returning of $25B to shareholders in 3 years” deal a few years ago. Hancock and friends really ran this fine company into a ditch. There are very profitable portions of AIG still around. The looseness of u/w on certain lines is coming home to roost. I wish my former colleagues luck as you are all good people. I’m sure AIG will pull out of this…
AIG used to make most of their profits from their life insurance sales in Asia, which was how they started. Once they sold that cash cow, the AIG model has not looked so profitable, and their wheeler dealer days are numbered………
AIG has been a thug company for a long time. Anyone remember big rigging? Then they had to be bailed out by the taxpayers for all their other nefarious dealings. I have no sympathy for them at all.