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Daily Insurance Industry News
Sunday 21st of January 2018
August 28, 2009

AIG shares surge with Greenberg collaboration rumours

by David Masters

Story link: AIG shares surge with Greenberg collaboration rumours

Shares in AIG sky-rocketed 27% yesterday following reports that the company’s new boss, Robert Benmosche, is seeking the advice of former CEO Maurice “Hank” Greenberg.

Investors believe the reconciliation is “meaningful”, analysts said, because of Greenberg’s access to capital and business opportunities.

Greenberg was forced out of AIG in 2005 following an accounting scandal at the firm, and has continually been sued by the company ever since.

“The world may choose to vilify him. I think of him as having had some problems, but he can help us with the solutions,” said Benmosche.

“I have enormous respect for him. He has built an incredible business. I want him to know about the things we are doing; I want to share with him my ideas; I want to get the benefit of his criticisms or his support,” added Benmosche.

Greenberg, who led AIG from being a small company to being the world’s largest insurer, returned the vote of confidence by claiming to have known Benmosche for years.

“He is a very able man, who did a very good job at MetLife,” Greenberg said.

“If Bob Benmosche seeks any assistance, whatever he needs me to do, I’ll be glad to give him.”

Greenberg added that he hopes to settle the outstanding lawsuits.

 

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