Tags: AIG | Benmosche | expand | lines

AIG’s Benmosche: We’re Going to Expand Insurance Lines

Monday, 24 Dec 2012 07:47 AM

Insurer AIG, having paid back the government, plans to expand its life and property and casualty business lines, said company CEO Robert Benmosche.

Proceeds will help the company fund debt buybacks and may lead to dividend payments or stock repurchases down the road, pending regulatory approval.

“We want to make sure we maintain sufficient liquidity so there’s no question about our strength,” Benmosche told CNBC.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

Shareholders will see fresh capital “when everybody is absolutely confident we have sufficient liquidity to handle any financial stress,” Benmosche told the network.

Turning to expansion plans, he said AIG might take its life-insurance business beyond its current U.S. and Japanese markets.

“We’re also going to grow our property-casualty business both on the commercial side, which is strong globally, and the consumer business where we sell accident, health and auto,” Benmosche said.

“There are still risks out there,” he added.

“There’s importance for companies to make sure they protect themselves from cyber attacks, directors suits and property casualty risks like another hurricane coming through.”

AIG recently said it would contribute $1 billion to its U.S. property subsidiaries to cover $1.3 billion in losses it expects from Superstorm Sandy, though some analysts see longer-term value in the company.

“This is an investment opportunity. They are trading at a larger discount to book value than peers and we see them getting to book value in a couple of years,” Sanford C. Bernstein analyst Josh Stirling said, according to Reuters.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

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Insurer AIG, having paid back the government, plans to expand its life and property and casualty business lines, said company CEO Robert Benmosche.
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