Tag Archives: AIG

AIG breaks into mortgage securitization big-time with high quality first offering

When American International Group sold its mortgage-guaranty unit United Guaranty to Arch Capital Group last year, the company said that it planned to turn to residential mortgages to make up for the loss in revenue from the sale of United Guaranty.

But AIG didn’t start originating new loans. Rather, the company has been buying up high-quality jumbo mortgages, and now plans to securitize those loans.

According to a presale report from Fitch Ratings, AIG is preparing to bring its first residential mortgage-backed securitization to market – a $511.98 million offering backed by 850 jumbo mortgages.

And while AIG is new to the securitization game, the quality of the RMBS deal itself is one of the strongest since the crisis.
Read on.

AIG eyes ‘direct investments’ in mortgages – FT.com

Insurer American International Group, or AIG, is looking to move into residential property loans with plans to make what company representatives called direct investments in mortgages, the Financial Times reported Sunday.

The newspaper’s website reported that AIG’s Chief Investment Officer Doug Dachille has told investors that increasing AIG’s allocation to residential mortgages was one of his “key initiatives.”

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Former A.I.G. chief expected to testify in civil fraud trial.

NY Times:

Maurice R. Greenberg, the former chief executive of American International Group, is expected to take the witness stand on Tuesday in his civil fraud trial, which recently got underway in a New York State court. The 91-year-old Mr. Greenberg, who is known as Hank, is expected to go toe-to-toe with lawyers from the New York’s attorney general’s office, and his appearance could last several days. He has fought the accusations for more than a decade, determined to preserve his legacy as a prominent businessman and the architect of A.I.G. The case was originally filed byEliot Spitzer when he was the state attorney general. Mr. Greenberg and another former A.I.G. executive, Howard Smith, face charges that they engineered phony reinsurance transactions intended to make A.I.G.’s numbers look better to Wall Street, a claim that Mr. Greenberg and Mr. Smith have denied. Liz Moyer

After 11 Years And 3 AGs, Ex-AIG CEO Finally Faces Trial

Law360, New York (September 12, 2016, 10:00 PM ET) — More than 11 years after being charged with civil fraud claims by then-New York Attorney General Eliot Spitzer, former American International Group Inc. CEO Maurice “Hank” Greenberg will face trial Tuesday over allegedly sham transactions that reaped tens of millions of dollars in bonuses.

Former AIG CEO Maurice “Hank” Greenberg, pictured, and former AIG Chief Financial Officer Howard I. Smith are both expected to take the witness stand. (Credit: AP) The marathon litigation against Greenberg, 91, and former AIG Chief Financial Officer Howard I. Smith has bounced…

Source: Law360

AIG’s Post-Bailout Tax Suit Faces Jury Trial

MANHATTAN (CN) — Since receiving a $182 billion bailout, the American International Group has been roundly mocked for lawsuits demanding more government money, but the insurer’s lawyers agreed on Friday to let a jury decide the last of these cases.
As U.S. District Judge Louis Stanton noted at a hearing this morning, AIG did not have much of a choice.
The government already filed a demand for a jury trial on AIG’s lawsuit from six months after its bailout, which seeks a $306 million refund over tax credits from seven foreign transactions in Ireland, France, New Zealand and elsewhere during the mid-1990s.
The lawsuit has been on a four-year pause since early 2013, when Stantonrefused AIG’s motion for summary judgment, leading to a series of appeals.
Friday morning’s proceedings ending that hiatus opened informally around a conference table, where Judge Stanton presided in a suit instead of his judicial robes.
In a faux-naive tone, Stanton asked the lawyers: “What have you been up to since I saw you last?”
Quite a lot, as it turned out.
Since the parties last met, two other attempts by AIG’s ex-CEO Maurice “Hank” Greenberg — through AIG’s shareholder Starr International Co. — to recover $40 billion in damages over the terms of the government’s bailout crashed and burned. (AIG itself was not a plaintiff these lawsuits, but a storm of public outrage followed a New York Times report from 2013 that its board considered joining them.)
The Federal Reserve conditioned AIG’s rescue on it holding a roughly 80 percent stake in the company.

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Former AIG chief Greenberg must face New York fraud trial

Former American International Group CEO Maurice “Hank” Greenberg must stand trial for allegedly orchestrating sham transactions at the insurer, New York’s top court ruled on Thursday, as the long-time financial industry titan failed in his 11-year-old quest to escape civil fraud charges.

The New York Court of Appeals also ruled that the state could seek to recoup from Greenberg, 91, and co-defendant Howard Smith, 71, AIG’s former chief financial officer, tens of millions of dollars in bonuses and interest covering the 2000-2005 period when the alleged fraud occurred. More than $55 million may be at stake.

In addition, the court said the state could seek to ban Greenberg and Smith from the securities industry and from serving as officers or directors of public companies.

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AIG found in ICIJ offshore leak database

Incorporation Jurisdiction Linked To Data From
AIG LTD. 06-JAN-2003 British Virgin Islands Thailand Panama Papers
AIG Global Real Estate Investment Corp. Undetermined Not identified Offshore Leaks
AIG GLOBAL INC 19-NOV-2009 Undetermined British Virgin Islands, United Arab Emirates Offshore Leaks
AIG Swith Plastic Co., Ltd. 15-JAN-2003 Undetermined British Virgin Islands, Hong Kong Offshore Leaks

Don’t break up AIG: CEO

Peter Hancock, AIG CEO

Wednesday, 3 Feb 2016 | 12:07 PM ET


Last week, AIG announced aggressive actions to create a leaner, more profitable and focused insurer. Some have called for a three-way break-up of our business, stating there is no reason that AIG’s Life and Property & Casualty (P&C) operations should stay together.

There is no doubt that our industry is undergoing significant change. Insurance companies of tomorrow will look very different from today. However, a split-up of AIG in the near-term is not the right path. It would hurt our shareholders as well as our other stakeholders: our customers, regulators and employees.

Material amounts of value would be at risk as we would sacrifice the benefits of our valuable deferred tax assets, diversification benefits, diverse earnings streams and scale efficiencies including shared services. Over the next two years, our plan will return at least $25 billion of capital to our shareholders.

Size is not an end in itself. Since 2008, we have sold more than 50 businesses and other assets. We have eliminated approximately 300 of our top 1,400 positions. We will pursue an IPO of our mortgage insurer, United Guaranty. We are selling our broker-dealer network, the Advisor Group.

We’re making tough calls. Over the next two years, we will reduce firm-wide operating expenses by an additional $1.6 billion, which represents 14 percent of 2015 general operating expenses. We are reorganizing our business segments into nine “modules” that each have end-to-end responsibility and accountability, and provide strategic flexibility in the future. Future divestitures are possible as we assess which assets are the most sustainable.

AIG to spin off mortgage unit, cut 300 jobs in sweeping overhaul

(Reuters) – American International Group Inc (AIG.N) said it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.

The insurer said in a statement on Tuesday that it plans to cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years.

In a separate filing, AIG said it had frozen its pension plan and let about 300 of its “top 1,400 employees” leave. Further job cuts are planned this year.

Shares of the biggest U.S. commercial insurer by premiums was up 1.3 percent at $56.08 in afternoon trading.

Read on.

AIG to spin off mortgage unit, cut jobs in sweeping overhaul

(Reuters) – American International Group Inc (>> American International Group Inc) said it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.

The insurer said in a statement on Tuesday that it plans to cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years.

Read on.