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Benmosche Says AIG Benefits from a Variety of Businesses in Response to Golub's Comments

Posted on 02 Feb 2011

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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.