AIG‘s Benmosche Pressured Board to Name New CEO

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June 11 (Bloomberg) -- Bloomberg’s Noah Buhayar examines the move by AIG to replace outgoing Chief executive officer Robert Benmosche and what can be expected of new CEO Peter Hancock. He speaks on Bloomberg Television’s “In The Loop.”

-- bob and moshe it.

He stayed on longer than that plan after announcing in 2010 he was battling cancer.

I spoke with bob for a few moments yesterday.

I want to read one part of what he said.

"it is simple.

I said i would set a date to make the trip, but in order to make the organizational changes at aig it would be important to have a new ceo to run the company.

The transition was taking too long." he pressed the board and said we need to make a decision.

The actual person taken over is not a surprise.

That is a great way to sum it up.

Peter hancock has been seen as the presumptive next ceo.

The surprise was the timing.

People thought that ben moshe -- bob and moshe it would be sticking around until next year.

This brings up questions.

J winthrop was seen as another successor.

He was the other internal candidate.

You runs the life insurance operation at aig.

Steve miller, the chairman of aig, told me that he plans to stay on, but we will see how that plays out.

There are questions about peter hancock's mandate and how he will take aig to the next phase.

And here is what bob said.

"peter will be continuing the momentum at aig.

If the board wanted a genetic change, they would have look for someone outside.

I put pressure on the board to name a new ceo.

There was too much pressure about it.

This is a process that has been going on for a long time.

They knew that bob and moshe had cancer.

They looked at some external candidates, but frankly they landed on -- they had these strong internal ones, and as rob said, they like the direction they were headed, so they meant about peter.

What are people telling you about what peter is going to do with aig?

The big issue with aig is it is a vastly different company today than what bob benmosche inherited.

Is a smaller company had clicked it is much smooth -- company.

It is much smaller.

They used to have these past international life organizations.

What peter hancock needs to do is not stabilize the business, but figure out ways to grow it, and that is what he has been doing is the head of the property casualty unit for the next stretch, trying to figure out ways aig can deploy capital at attractive risk-adjusted returns.

Very some criticism.

Some have said peter hancock does not know the insurance business that while.

He is still relatively new to it.

He was a banker at j.p. morgan.

In derivatives.

And he is relatively new to the insurance industry.

He has been to aig for a couple of years, traveling the world to figure out operations, and we will see how he does.

On the question on aig and why this transition taking place now, some have said there is an employee morale problem and some executives are leaving.

I talked to bob benmosche about that, and he said it is the opposite, there are people knocking on the door, they want to comment they believe aig has its groove back.

That is when he was saying.

What are you hearing on that front?

Morale is something that has hung around aig since the financial crisis.

And a lot of executive departures.

We will have to see.

It will come down to how peter grows the business.

Are there attractive opportunities for people to stay on and grow their careers?

Noah, thank you for joining me on this.

In washington, that is the seat of the number two republican in the house, eric cantor, exposing the continued divide in the party.

Peter cook is tracking the fallout.

What exactly happened here in virginia?

Nobody saw it coming including, will of poorly, eric cantor.

One minute, he is the

This text has been automatically generated. It may not be 100% accurate.


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