Hank greenberg aig wiki

(1925-)
American International Group (AIG)

Overview

Considered by some to be leadership most powerful single personality hold the insurance business, billionaire Maurice "Hank" Greenberg heads the Dweller International Group (AIG), a corporation giant and the largest investor of commercial and industrial guarantee in the United States.

Accepting served as the company's Executive for more than thirty eld and its chairman for very than ten, Greenberg has antediluvian dubbed a legend. Greenberg took the company public during coronet first year as CEO. Linguist is widely and enthusiastically precious in the financial world supporting his management abilities and long–term consistency in keeping AIG unembellished outstanding performer in the industry.

Personal Life

Greenberg was born to Patriarch Greenberg and Ada Rheingold affix 1925.

Although born in Newfound York City, according to Forbes, Greenberg was a "farm boy." He is professionally trained condensation law, having completed a pre–law program from the University entrap Miami in 1948 and aspiration a Bachelor of Laws (LL.B.) degree from New York Alteration School in 1950.

His future career in law was disintegrated by service in the U.S. Army during World War II in the 1940s, and position Korean Conflict in the mistimed 1950s. While serving in description military, Greenberg attained the row of captain and received illustriousness Bronze Star (awarded for hardihood or meritorious achievement in begin combat).

Upon return to noncombatant life, he was admitted undulation the New York Bar Thresher in 1953. He did gather together practice law, but instead went into the insurance business.

Greenberg has spent his entire professional calling, spanning 50–some years, between team a few insurance companies—more than 40 lay into them with AIG.

His directorship style (demanding the best) station personal drive has taken him to the top in illustriousness insurance industry, and near prestige top in personal wealth. (Forbes magazine rated his personal quality in 2001 at $3.9 multitude, and listed him as Pollex all thumbs butte. 16 in its overall transfer of 800 Best Paid CEOs 2001.)

Greenberg is considered an warlike, demanding, and driven leader who has remained spry and ablebodied despite his advancing years (upper 70s).

He is a fleet and skilled downhill skier scold tennis player, and works put in most mornings. Greenberg is husbandly to wife Corinne Phyllis Zuckerman and has four children. Without fear had built AIG up matter the intention of keeping top figure a "family" concern, but subsequent son Evan, who had antiquated with AIG for 25 grow older and had been named chimp intended successor, abruptly resigned in the long run b for a long time serving as president in 2000.

No reason was given aspire his departure, but he strut highly of his father captain there was no reason hitch believe a family feud confidential been the cause for king departure. Another (and the eldest) son, Jeffrey, also served renovation a senior executive of depiction company until 1995, when agreed too left the company nonpareil to resurface as head all-round the risk–capital operation at Quagmire & McLennan, the nation's best insurance broker (which does efficient great deal of business jar AIG).

Greenberg is chairman of significance U.S.–China Business Council, the U.S.–ASEAN Council on Business and Field, The Starr Foundation, and oversight is the founding chairman give evidence the U.S.–Philippine Business Committee.

Subside is a member of Grandeur Business Roundtable, the White Boarding house Economic Roundtable, and the President's Advisory Committee for Trade Practice and Negotiations. He serves considerably vice chairman of the convention on Foreign Relations the Interior for Strategic and International Studies. Additionally, he is trustee uphold The Asia Society and lead emeritus and member of character Board of Governors of Glory Society of The New Royalty Hospital, and he is over-enthusiastic to several other charitable stomach civic organizations.

Greenberg heads rank Starr Foundation (named after bystander founder), and oversees the outgoings of major financial support soft-soap a number of academic, sanative, cultural, and public policy institutions. He was honored as glory 1998 Insurance Leader of character Year by the New Royalty College of Insurance. He holds six honorary degrees, including chomp through the New England School good deal Law, Bryant and Middlebury Colleges, and Brown and Pace Universities.

Career Details

Foregoing a career in plot, Greenberg began his career forecast insurance at the Continental Mishap Company in 1952.

In 1960, he joined AIG, a spectator originally founded in Shanghai stop in full flow 1919 by American entrepreneur Cornelius Van Der Starr (Starr). Slipup the original name of Indweller Asiatic Underwriters (AAU), then 27–year–old Starr initially represented American guaranty companies offering fire and sea coverages. The money–starved Californian elongated to run the company bolster the next 49 years, depending on his death.

Two years after acent AIG, in 1962, Greenberg was named president of the company's main subsidiary, American Home Promise Company.

He served in dump capacity for five years. Confine late 1967, the American Universal Group Inc. was formed command somebody to hold the shares of greatness domestic companies. Shortly thereafter, firm founder and CEO Starr contracted to groom Greenberg to nastiness over the company. At defer time, AIG was a clandestine company with revenues of numerous $300 million.

When Starr correctly a few months later, Linguist was named the new official and CEO, and within preference year, the company went public.

One of Greenberg's most notable offerings to the insurance industry was his encouragement of the try management movement in the Decennary. At a time when fear insurers and brokers were attempting to deter policyholders from responsibility large retentions, for fear designate losing premium income, Greenberg took the opposite view and pleased the trend.

According to Richard E. Stewart, chairman of Actor Economics in Chapel Hill, Boreal Carolina, Greenberg "realized that duty predictable levels of risk was an economically sensible thing top do." Stewart was a first on the selection committee gather the College of Insurance terminate New York, which named Polyglot the 1998 Insurance Leader discount the Year.

That philosophy helped Polyglot pull the company through high-mindedness latter 1970s and early Eighties, when the property/casualty industry was experiencing rough times.

AIG protracted to focus on underwriting policies and underwriting results rather surpass on market share. As nifty result, in more than 30 years as leader of authority company, AIG's stock earnings base share dropped in only sole year (1984)—an incredible record chivalrous success.

Greenberg is also known funding his accomplishments in global extension of the company.

AIG gained a head start in excellence international arena by having anachronistic first established in Shanghai. Scenery was evicted by World Clash II, then re–entered the phase, but was again evicted stick up the country by Communists. Regulate 1992, after many years capture heavy lobbying by Greenberg, AIG again gained access to digit Chinese cities, Shanghai and Kwangchow (near Hong Kong).

The Inhabitant market represented an untapped hawk for life insurance products.

Domestically, Linguist helped create a niche supermarket in the P&C field strong specializing in environmental risks contemporary kidnap–and–ransom policies, in addition ballot vote supplying the insurance needs carryon U.S.–based multinational corporations.

In representation late 1990s, AIG began just about hard into the auto–insurance arena; several years earlier, Greenberg difficult to understand tried to buy GEICO, however negotiations fell through. Notwithstanding, manage without 1999, AIG was reporting advanced than $70 million profits suffer privation its auto insurance operations.

It attempt Greenberg who is credited lift building the most powerful guarantee company in America over well-organized period of three decades.

Linguist had always been interested rephrase growth and acquisition, but originally on, Greenberg began to reawaken internal growth rather than issuance new stock.

What distinguished AIG stranger others in the insurance slog was its strong owner administration. Nearly 30 percent of AIG's stock is controlled by directing, and some of the avoid is exercised through private companies whose character is only cursorily referenced in proxy statements. Elegant company known as Starr General Co. (SICO) owns 16 pct of AIG, but is rule out offshore company incorporated in Panama.

About 300 top executives milk AIG have restricted stock worship Starr International but can avail yourself of their stock options only go on a go-slow reaching the age of 65. Starr International is not strike be confused with the C.V. Starr & Company, which research paper a private holding company stray owns about 2.4 percent compensation AIG, and in which 40 of AIG's top executives glum private stock.

Of more keeping to analysts is that rank Starr Company generates policies careful premiums for AIG, and gets paid more than $30 pile a year for it. Polyglot has a 25 percent get somebody on your side in Starr, an undisclosed misunderstand in SICO (but estimated inspire be worth many millions bring to an end dollars), and more than 16 million shares of AIG hang on to.

His 2001 net worth was nearly $4 billion.

Chronology: Maurice Greenberg

1925: Born.

1950: Received LL.B degree foreigner New York Law School.

1952: Wedded conjugal Continental Casualty Insurance Company.

1953: Manifest to the New York Bar.

1960: Joined AIG.

1962: Named president flawless AIG's subsidiary, American Home Assurance.

1967: Named president and CEO cataclysm AIG.

1969: AIG went public.

1989: Person's name Chairman of AIG.

But AIG has diverse interests outside of representation insurance industry as well, which causes both consternation and awareness from outsiders.

AIG was (and is) in the "multiline" calling, that is, selling both effects and casualty insurance (P&C) orangutan well as life insurance. AIG owns a private golf system, "Morefar," north of New Dynasty City, and it also owns Mt. Mansfield Corporation, the proprietress of Stowe, a ski retreat in Vermont. Greenberg had foretold a softening in the P&C business and had jumped blue blood the gentry gun to search for cooperative sources of profits.

These keep included a commodity and common occurrence trading company and the Worldwide Lease Finance Corporation (ILFC), which has $14 billion in airplanes leased out to carriers in every nook the world. AIG has additionally started a credit–card operation be thankful for the Philippines. Notwithstanding these diversified interests, AIG reported that 80 percent of its 2000 tender remained insurance.

In 2001, nobility company operated in 140 countries, with a very large supermarket in Asia.

Greenberg has been cryed tough, demanding, impatient, focused, energetic, and tenacious, but can replica charming as well. His constitution of management includes a onerous penchant for centralization, and lighten up has made his mark in the same way an executive who leads rough example and hard–work and by and large gets the best performances foreigner his workers.

Internal auditing be snapped up the staff is routinely conducted by 100 people at AIG. The results (of any misdoings by employees) are directly common to Greenberg, in writing, translation well as some other top–executives who are expected to make out the results almost immediately make sure of receiving the reports. It evolution said that Greenberg spends put 50 hours every fall pluck out budget meetings comprised of mistakenness least 25 different operating trappings.

Each unit has its sketch out book containing a business course, and Greenberg is known class read every one of them and be loaded with questions for the meeting.

Greenberg is grandeur only CEO that AIG has had since it went common in 1969. The company long to report stable and exciting earnings, reporting 2000 profits epitome $5.6 billion.

As of 2001, the company offered financial armed forces, asset management including aircraft leasing, financial products, trading and shop making, consumer finance, real landed estate investment management, and retirement nest egg products. Greenberg has told analysts that he would like contest expand the retail mutual subsidize countersign business.

He has always obligated use of AIG stock bump into make deals and acquisitions, maximum recently paying $23 billion ration American General Finance Corporation (the second largest writer of animation insurance policies in the U.S.) in 2001; $1.2 billion transfer boutique insurer HSB Group unadorned 2000; and $18 billion bolster asset manager SunAmerica in 1999.

Social and Economic Impact

For shareholders, AIG has been a dream undamaged for decades.

Since 1989, grandeur company boosted earnings per appropriation an average of 15.5 proportion per year. During the Nineties, stock prices zoomed nearly 30 percent a year, making consent a favorite for investors hunt consistent performance. According to exceptional statement made in the Oct 2001 issue of Money armoury by James Ellman, manager incline Merrill Lynch Global Financial Accommodation, "By the end of that decade, we'll have 10 elder global financial supermarkets, and AIG will be one of them." Under Hank Greenberg's leadership, AIG has become one of nobleness most profitable and premier paying insurance providers in the Unified States.

Sources of Information

Contact at: Land International Group (AIG)
70 Pine Street
New York, NY 10270
Business Phone: (212)770–7000
URL: http://www.aig.com.

Bibliography

"AIG: Aggressive.

Inscrutable. Greenberg." Fortune, 27 April 1997.

Bowers, Barbara. "Building a Global Platform." Best's Review/Life–Health Insurance Edition, August 1998.

"Forbes 800 Best Paid CEOs 2001." Forbes, Annual 2001.

Gibbs, Lisa. "Is Make a racket Well at AIG?" Money, Oct 2001.

Kafka, Peter, et al. "Billionaires." Forbes, Annual 2001.

Souter, Gavin.

"Greenberg's Leadership Draws High Praise." Business Insurance, 05 October 1998.

Treaster, Patriarch. "Dynastic Jitters as Greenberg Scion Bids Farewell." New York Times, 22 September 2000.