Posted on 02 Feb 2011
Chief Executive Officer Robert Benmosche of American International Group (AIG) rebuffed calls by former AIG Chairman Harvey Golub to break up the company, saying the firm benefits from having a variety of businesses, according to a report by Bloomberg.
Benmosche said on Tuesday in Washington at a conference sponsored by the Insured Retirement Institute that “We have a very strong property and casualty company that’s global.” SunAmerica Financial Group, the U.S. life insurance business, “is very strongly capitalized.” AIG also plans to keep its mortgage guarantor and plane-leasing unit, Benmosche said.
Benmosche has reshaped AIG through more than $30 billion of asset sales as he seeks to release what was once the world’s largest insurer from government ownership. Harvey Golub, the ex- chairman who resigned in July after clashing with Benmosche, said on Jan. 26 that AIG’s two main businesses have “no strategic fit between them.”
Chartis, the global property-casualty unit, and SunAmerica Financial Group, comprise “the core of AIG’s nucleus of businesses,” Benmosche, 66, said in a June letter to employees. Golub, 71, told Bloomberg Television that “AIG shouldn’t exist,” and investors would be better off if the life and property-casualty businesses were separated into different companies.