If Only We Had Seen This AIG Headline in 2007

Robert Benmosche

CNBC interviewed with AIG CEO Robert Benmosche and it generated this headline:

AIG Will Be More Selective on Risks: CEO

In his interview with Mary Thompson, Benmosche acknowledges that he continues to see the American taxpayer as his primary shareholder with 77% ownership, discusses the recent sale of AIG bonds by the NY Fed, the lack of impact of AIA stock on AIG’s capital and the strength of the company’s core insurance business.

Here’s what he had to say about risk: “We see the markets hardening in the US as well as around the world. Look, clearly when you look at the losses the industry has taken…the fact is that we’re not getting paid appropriately for the risks we’re putting on our books…[T]herefore, we are now taking a holistic view of our book of business…[We are looking] at our risks around the globe. And we have to earn at least our cost of capital, plus we want to make a profit as well. So our people are now looking at what risks we want to put [on], and quite frankly, we’re not going to chase the topline.

Watch the full video [via CNBC]:

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