Greenberg tries a second coming at AIG

17 September 2008

Mumbai: The current liquidity crisis at American International Group (AIG) may come as a blessing in disguise for its former CEO Hank Greenberg to stage a comeback.

AIG is an assortment of businesses with interests in areas ranging from aircraft leasing to life insurance and pension plans. While most parts of its operations have been swept under by the US financial market crisis, AIG claims its insurance unit and the aircraft leasing arms are still profitable.

With investments in development projects and governments in Asia, AIG's business model is still profitable and that explains former CEO Hank Greenberg's interest in AIG's assets. Greenberg, who was forced to resign in 2005 over allegations of fraud from the New York-based insurer, still owns 13.6 per cent of AIG via his investment firm CV Starr.

The Greenberg-led investor group is also considering purchasing certain parts of AIG as well as making loans to the company.

AIG's general insurance business, which accounted for nearly half its $110 billion in revenue last year, provides some of the most unusual types of coverage, like insurance against kidnapping and protection from suits against a company's officers and directors.

The group claims that its companies are the largest underwriters of commercial and industrial insurance in the US. Its policies cover everything from environmental liability for companies to auto insurance.