I Couldn't believe my eyes

From my perch on the treadmill this afternoon, the television showed what I’ve been recommending since Robert Willumstad took control (this word has now taken on a different meaning) at AIG:

Hank Greenberg wrote to the new CEO at AIG, Robert Willumstad offering his help in return for nothing. AIG turned Greenberg down because he might ‘overshadow’ the CEO. Now what is that all about?

Check out StreetTalk ™ at http://www.isn-inc.com/ – titled – “Wishful Thinking…” (July 2) or go to the editor's blog at http://www.isn-inc.blogspot.com/ – same title.

This isn’t about saving face; this is about saving AIG; this is about working smart quickly to tackle a possibly solvable challenge with the right person(s) helping. Hank Greenberg is that person – he built the company from a small insurance company into the world’s biggest commercial insurance company – he knows where all the pieces are.

I hope the Board of Directors understands this. Put differences aside – this is too big, too important for too many people in too many countries around the world. We're talking about money and people here.

Get a grip - smart people do the right thing. So do real leaders.

Tune in to http://www.isn-inc.com/ for the latest insurance news from around the world. For more in-depth coverage including special reports, subscribe to the Insurance Research Letter – available on-line at https://www.isn-inc.com/members/subscribe/

Top 10 Brokers?

Does anyone have a list of the top 10 brokers in:

Japan
China
Hong Kong
Taiwan
South Korea
Malaysia

Info would be gratefully appreciated.

What is going to happen at AIG?

The New York Times. 2008/09/12. Page C1 – This article reports that on September 25 Robert Willumstad, AIG’s chief executive, is expected to announce a master plan to turn the company around.

StreetTalk ™ has heard that AIG may, or not – it’s hearsay, place all its’ “at risk” (that business with potential challenges) into a new company leaving the old AIG with a clean slate. This makes some sense but what will the impact be on shareholders?

Since Willumstad succeeded Martin Sullivan as head of the company in June, AIG’s stock has declined by nearly 50 percent.

Aon Presents at Lehman Brothers – Webcast Replay Available

Recommend listening – Gregory C. Case, president and chief executive officer of Aon Corporation, made a presentation at the Lehman Brothers Global Financial Services Conference in New York on Tuesday, September 9, 2008. The presentation was impressive. Mr. Case's presentation will be available via live webcast. Interested parties can access a replay at http://www.aon.com/. It will be archived for up to 90 days.

Tune in to www.isn-inc.com for insurance news from around the world. For more in-depth coverage including special reports, subscribe to the Insurance Research Letter – available on-line at https://www.inc.com/members/subscribe

Stadium Naming Rights?

Should Allianz who supported the Nazi war effort be allowed to put their name on the new Giants/Jets stadium in NJ? (The New York Times. 2008/09/12. Page D2.)

Aon Buying Benfield is Significant

It’s been reported, though not confirmed, that Marsh didn’t get its’ act together fast enough to acquire Benfield before Aon, led by Greg Case, stepped in and closed the deal – BTW, making the guys in London a great deal of money. Aon is spending more to buy Benfield than it spent to acquire Alexander & Alexander! But it may well be worth it – with an estimated $2 billion in revenue who could possibly catch them.

Michael O’Halleran, top man of Aon Re Global, will have his hands full – capable hands, for sure, but this will take some time to integrate – if that’s the operative word – word has it that that this is a good business match – complimentary specialties, no conflicting client lists.

Someone suggested to that Rodman “Rod” Fox may be standing on the sidelines to start anew reinsurance brokerage with any people who may leave the new Aon Benfield.

Some background (not all of it – don’t ask) on Rod Fox – try and follow this – Rod Fox, worked for Ted Blanch @ E.W. Blanch for 15 years eventually becoming President and COO; joined Benfield in 2000 as a director of the group and CEO of Benfield Greig; Then in 2006, after a spell in the wilderness, was hired by Hannover Re to run its U.S. subsidiary Clarendon Insurance Group – which the German insurer spun off and it morphed into Praetorian where Fox was the CEO; something happened, and now Fox is CEO of New Asset Class – a specialty provider of property catastrophe risk management and underwriting services that utilizes proprietary technology and advanced analytics). Some people step in mud, this man steps into pots of gold……..

Tune in to www.isn-inc.com for the latest insurance news from around the world. For more in-depth coverage including special reports, subscribe to the Insurance Research Letter – available on-line at https://www.inc.com/members/subscribe

What's next at AIG?

Wishful Thinking……

In a world full of odd occurrences, nothing should be unexpected.

That AIG top man Martin Sullivan was forced out after several quarters of exceptional losses is not surprising given the magnitude of the losses coupled with Wall Street’s impatience and lack of deep understanding. To me, this demonstrates former U.S. President Harry S. Truman’s famous statement, “The buck stops here”, is alive and well – Martin Sullivan took the fall. In fairness, there is simply no way that Marty Sullivan could possibly know everything there was to know about AIG. Only one man knows.

That former Citigroup President and Chief Operating Officer Robert Willumstad and current AIG board member (since 2006) was selected to take over the reins of the far-flung AIG empire was not unforeseen. On July 15, 2005, Mr. Willumstad announced his intention to leave Citigroup after being passed over for the top job saying that he wanted to run a public company.

Well, now here’s his opportunity to show what real leadership looks like. If Mr. Willumstad has the backbone a real leader is supposed to have, he will ask Hank Greenberg to return to AIG and help him sift through its various businesses and relationships that the insurer (i.e., MRG) forged over the past decades.

Please, Mr. Willumstad, beg if you must – it’s without doubt the smart thing to do.

Insurance Research Letter

You are invited to subscribe:

Insurance Research Letter
Covering the World of Insurance Since 1966

The Insurance Research Letter has been a leading source of global insurance information for nearly half a century. Insurance professionals around the world rely on the reporting and current country information. No other publication covers the world the way the Insurance Research Letter does with a world-class team of correspondents reporting from all corners of the world.

Member: Presse Internationale des Assurances (PIA)

- Please respond with name, company and email: