NEW YORK—American International Group Inc., the insurance giant, said this week that its chairman, Harvey Golub, has resigned, citing an irreconcilable business relationship with Chief Executive Officer Robert Benmosche.
AIG, the biggest insurer in the United States, named Robert Miller successor and appointed him as chairman of the firm, effectively immediately.
In a letter released to the public by AIG, Golub said, “Bob Benmosche has informed the Board that he believes our working relationship as Chairman and CEO to be ineffective and unsustainable.”
“On behalf of the entire Board, I would like to thank Harvey for his tremendous service to AIG,” said incoming Chairman Miller in a statement. Miller was previously an executive at Delphi, the U.S. auto parts maker, and oversaw the company’s bankruptcy and restructuring.
Miller will be asked to lead AIG through a similar situation, as the company aims to build up its business and repay the federal government. Golub was brought in last year, after embarrassing public controversy over AIG’s employee bonuses.
Benmosche is an insurance industry veteran who once led MetLife, another insurance giant based in New York.
AIA to Go Public
On Wednesday, AIG also voted to proceed with an initial public offering to spin off its Asian insurance company, American International Assurance, which is based in Hong Kong. AIG had previously agreed to sell the company to U.K.’s Prudential Plc before backing out of a deal.
The sale to Prudential would have brought in $35.5 billion, all of which would go toward paying back U.S. taxpayers. But Prudential had lowered its bid to around $30 billion and AIG decided to withdraw from the sale.
At one point, AIG owed the U.S. government more than $182 billion in separate bailouts from the U.S. Treasury and the Federal Reserve.
AIG, the biggest insurer in the United States, named Robert Miller successor and appointed him as chairman of the firm, effectively immediately.
In a letter released to the public by AIG, Golub said, “Bob Benmosche has informed the Board that he believes our working relationship as Chairman and CEO to be ineffective and unsustainable.”
“On behalf of the entire Board, I would like to thank Harvey for his tremendous service to AIG,” said incoming Chairman Miller in a statement. Miller was previously an executive at Delphi, the U.S. auto parts maker, and oversaw the company’s bankruptcy and restructuring.
Miller will be asked to lead AIG through a similar situation, as the company aims to build up its business and repay the federal government. Golub was brought in last year, after embarrassing public controversy over AIG’s employee bonuses.
Benmosche is an insurance industry veteran who once led MetLife, another insurance giant based in New York.
AIA to Go Public
On Wednesday, AIG also voted to proceed with an initial public offering to spin off its Asian insurance company, American International Assurance, which is based in Hong Kong. AIG had previously agreed to sell the company to U.K.’s Prudential Plc before backing out of a deal.
The sale to Prudential would have brought in $35.5 billion, all of which would go toward paying back U.S. taxpayers. But Prudential had lowered its bid to around $30 billion and AIG decided to withdraw from the sale.
At one point, AIG owed the U.S. government more than $182 billion in separate bailouts from the U.S. Treasury and the Federal Reserve.
