Philam Life in talks with former AIG CEO

MANILA, Philippines - The Philippine American Life and General Insurance Co. (Philam Life) said it had talks with  Maurice “Hank” R. Greenberg, the former CEO of insurance giant American International Group (AIG), when the latter visited the country last month.

Philam Life president and chief executive officer Rex A. Mendoza confirmed their meeting with Greenberg but did not elaborate on their discussions.

Greenberg was head of AIG when the global insurer  figured prominently in the Lehman-induced financial crisis in 2008. Bailed out by the US government, AIG was forced to sell assets, including top Asian units AIA and Philam Life, to raise funds to repay its debts.

AIA has taken over control of Philam Life.

Greenberg is now chairman and CEO of C.V. Starr & Co. Inc., a huge diversified financial services firm. He is also president and CEO of Starr Insurance Holdings Inc., another global major non-life insurance and financial services company with strong expertise in the aviation, marine, casualty, property, professional liabilities, and other specific risks and types of coverage.

“Mr. Greenberg is capable of operating his own company, but he is welcome at Philam Life, although the decision (for an equity acquisition by Greenberg) must come from AIA,” Mendoza said.

Philam Life is a composite license holder, meaning it operates both as a life and non-life company. But since the Lehman-triggered financial crisis, its non-life insurance segment has been put in the backburner.

Any party interested in non-life insurance operations must acquire equity since it is extremely expensive to acquire a new license. The minimum paid up capital required for a new entrant with foreign origin alone is P1 billion.

Greenberg also paid an official visit to the Insurance Commission (IC) last month.

IC Commissioner Emmanuel Dooc confirmed that Greenberg had expressed interest in entering the country’s non-life insurance industry but refused to say whether the Starr chief executive was looking for an acquisition or preferred to open a new firm.