AIG executives meet
analysts to push resiliency message
Send a link to a friend
[March 25, 2017]
By Suzanne Barlyn
NEW YORK (Reuters) - American International
Group Inc <AIG.N> executives have been meeting with investors and
analysts to build confidence in the insurer and its turnaround plan amid
uncertainty over a replacement for outgoing Chief Executive Officer
Chief Financial Officer Sid Sankaran, commercial insurance head Robert
Schimek and consumer insurance head Kevin Hogan held one meeting with a
group of Wall Street analysts on Thursday to field questions about AIG’s
disappointing fourth-quarter results and its two-year restructuring
plan, attendees said.
That followed several meetings Sankaran and investor relations staff
organized with shareholders since AIG said on March 9 that Hancock plans
to resign, a spokeswoman said.During the meetings, executives tried to
drive home a message of financial resilience, telling participants that
AIG was on target to meet its goals for 2017, in the second half of its
turnaround plan, analysts said in reports on Friday. They added that the
company also said its reserves were sufficient.
A big reserve addition led AIG to report a surprisingly large
fourth-quarter loss on Feb. 14, jolting investors and leading to
Hancock’s planned departure.
A successor has not yet been announced, though several names have been
cited by media reports and analysts. The board has pledged to find a new
[to top of second column]
The AIG logo is seen at its building in New York's financial
district March 19, 2015. REUTERS/Brendan McDermid
At the two-hour gathering on Thursday, which drew analysts from at least seven
sell-side firms, the CEO question “definitely was in the air,” Sandler O’Neill
analyst Paul Newsome said on Friday.
However, several analysts said Sankaran, Schimek and Hogan demurred when asked
about the succession process. Newsome said he thought a replacement will
probably take months rather than weeks.
"During the meeting it appeared as if potential CEO candidates were not meeting
with the C-suite, which was a bit surprising to us, and perhaps leads us to
believe that an internal candidate is unlikely," Macquarie analyst Amit Kumar
said in note to clients.
AIG’s board has said the insurer will continue to pursue the turnaround plan
structured by Hancock, even after his departure. The plan involves divesting
businesses, cutting costs and ultimately returning $25 billion to shareholders.
(Reporting by Suzanne Barlyn in New York Editing by Lauren LaCapra and Tom
[© 2017 Thomson Reuters. All rights
Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.