| NEW YORK, March 24
NEW YORK, March 24 American International Group
Inc executives have been meeting with investors and
analysts to build confidence in the insurer and its turnaround
plan amid uncertainty over a replacement for outgoing Chief
Executive Officer Peter Hancock.
Chief Financial Officer Sid Sankaran, commercial insurance
head Robert Schimek and consumer insurance head Kevin Hogan held
one meeting with a group of Wall Street analysts on Thursday to
field questions about AIG’s disappointing fourth-quarter results
and its two-year restructuring plan, attendees said.
That followed several meetings Sankaran and investor
relations staff organized with shareholders since AIG said on
March 9 that Hancock plans to resign, a spokeswoman said.
During the meetings, executives tried to drive home a
message of financial resilience, telling participants that AIG
was on target to meet its goals for 2017, in the second half of
its turnaround plan, analysts said in reports on Friday. They
added that the company also said its reserves were sufficient.
A big reserve addition led AIG to report a surprisingly
large fourth-quarter loss on Feb. 14, jolting investors and
leading to Hancock’s planned departure.
A successor has not yet been announced, though several names
have been cited by media reports and analysts. The board has
pledged to find a new CEO quickly.
At the two-hour gathering on Thursday, which drew analysts
from at least seven sell-side firms, the CEO question
“definitely was in the air,” Sandler O’Neill analyst Paul
Newsome said on Friday.
However, several analysts said Sankaran, Schimek and Hogan
demurred when asked about the succession process. Newsome said
he thought a replacement will probably take months rather than
"During the meeting it appeared as if potential CEO
candidates were not meeting with the C-suite, which was a bit
surprising to us, and perhaps leads us to believe that an
internal candidate is unlikely," Macquarie analyst Amit Kumar
said in note to clients.
AIG’s board has said the insurer will continue to pursue the
turnaround plan structured by Hancock, even after his departure.
The plan involves divesting businesses, cutting costs and
ultimately returning $25 billion to shareholders.
(Reporting by Suzanne Barlyn in New York Editing by Lauren
LaCapra and Tom Brown)