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March 14, 2005 at 07:00 PM
NU Online News Service, March 14, 2005, 11:45 p.m. EST
Maurice Greenberg, the 79-year-old head of American International Group Inc., New York, is hanging on to his post as head of the insurance company.[@@]
Martin Sullivan, 50, who has been AIG’s vice chairman and co-chief operating officer, has taken over as AIG’s president and chief executive officer, but Greenberg is still AIG’s non-executive chairman, AIG says.
Sullivan came up through the property-casualty side at AIG.
AIG also is postponing the date when it will file its 10-K annual report with the U.S. Securities and Exchange Commission, and it says Howard Smith, 60, the company’s chief financial officer, has taken a leave of absence.
Steven Bensinger, 50, now will be AIG’s chief financial officer, treasurer and comptroller. He also will be promoted to executive vice president, from senior vice president. Bensinger has been AIG’s treasurer and comptroller.
In other news, AIG has named Donald Kanak, 52, executive vice chairman and chief operating officer for Asia. Kanak, who previously was vice chairman and co-chief operating officer, will work closely with Edmund Tse, AIG’s senior vice chairman for life insurance, AIG says.
Frank Zarb, chairman of AIG’s board executive committee, issued a statement implying that AIG’s board was responsible for the decision to change Greenberg’s role at the company.
“As a result of Hank’s leadership, AIG today is the largest and best capitalized insurance and financial services organization in the world,” Zarb says in the statement. “However, the board has concluded it is now in the best interest of AIG’s shareholders, customers and employees to turn to a new generation of leadership, and we are pleased that Hank Greenberg will assist in the transition.”
Standard & Poor’s Ratings Services, New York, and Moody’s Investors Service, New York, have reacted by putting AIG’s AAA credit rating on review, and the New York office of Fitch Ratings already has cut its rating on long-term AIG debt to AA plus.
