If the last 10 years have been ones of change for the financial services industry, the next five years will offer even greater change, says Robert Devlin, chairman of American General Corp., Houston.
The industry used to be fragmented, but there will be greater integration during the coming years, Devlin predicts.
American General is in the midst of its own change, awaiting completion of an acquisition by American International Group Inc., New York, a company with more than $210 billion in market capitalization.
Devlin says the acquisition will make American General part of a ‘AAA’-rated company, strengthen American General’s balance sheet and put the Houston-based insurer in a more viable position.
“Scale matters today,” according to Rod Martin, senior vice chairman-financial services with American General. “Smaller companies, whether we like it or not, will be further marginalized.”
James Corcoran, executive vice president-government and industry relations with American General, says regulators are more concerned with suitability.