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Speaker 1: For many years, the most successful insurance company in the

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Speaker 1: world was AIG, and then the Great Recession came and

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Speaker 1: AIG required a one hundred and eighty three billion dollar

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Speaker 1: bailout from the US government. That bailout has now been

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Speaker 1: repaid with interest and AIG is reshaped into a smaller

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Speaker 1: but very successful insurance company being led by Peter Sofino.

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Speaker 1: I had a chance to sit down with Peter and

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Speaker 1: his offices in New York to talk about the new AIG. So,

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Speaker 1: for those who aren't familiar with property and casualty insurers,

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Speaker 1: what do they really do well?

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Speaker 2: We ensure businesses small, medium, large commercial businesses for their

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Speaker 2: property insurance or their auto or financial lines, which is

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Speaker 2: directors and officers. And we also have a business that

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Speaker 2: does harder to place business you know, such as like

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Speaker 2: you know, contractors or you know, businesses that may not

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Speaker 2: find its way into the conventional business. And we also

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Speaker 2: have a Lloyd syndicate and we're a big part of

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Speaker 2: Lloyd's as well.

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Speaker 1: So as I understand the insurance business, they're really two

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Speaker 1: parts to it. One is the part of assessing the

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Speaker 1: risk and charging premiums that hopefully will for the maturest

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Speaker 1: point of view, cover the risk, and the second is

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Speaker 1: taking those premiums and investing it and hopefully getting a

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Speaker 1: good way to return. So let's talk about the first part.

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Speaker 1: So in the first part of assessing risks, is it

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Speaker 1: harder today because inflation is so high to assess the

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Speaker 1: risk that you might have in ensuring somebody's home or

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Speaker 1: property at.

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Speaker 2: A property and casualty company. It's much more complicated to

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Speaker 2: get the underwriting right than it is the investment side.

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Speaker 2: And you're right, with inflation, the complexity of cyber risk

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Speaker 2: today and other factors such as global warming, catastrophes, you know,

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Speaker 2: the dynamic of what happened after the pandemic with density

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Speaker 2: and peak zone areas such as Florida, California. So understanding

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Speaker 2: your balance sheet and your aggregates with what you're underwriting

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Speaker 2: is complicated. You need people with a lot of experience

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Speaker 2: and a lot of you know, good judgment in terms

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Speaker 2: of making underwriting choices.

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Speaker 1: If somebody says climate change does not really hear, they

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Speaker 1: haven't talked to a property and casually ensure I gess right.

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Speaker 2: That's corrected, then that is true. Five out of the

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Speaker 2: last six years, we've had over one hundred billion dollars

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Speaker 2: of natural disaster losses in our industry that's never happened before.

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Speaker 1: What about artificial intelligence is artificial intelligence is going to

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Speaker 1: enable you and others to say we have enough information

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Speaker 1: to know exactly what something is going to be worth

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Speaker 1: there in terms of ensuring it or not.

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Speaker 2: Artificial intelligence is finding its way into our business in

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Speaker 2: a variety of different factors. I think the first piece

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Speaker 2: is getting much better insight into data, which allows us

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Speaker 2: to make better decisions on underwriting. It's also a great

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Speaker 2: opportunity to service business better in terms of like call

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Speaker 2: centers and different ways of what's using robotics and other

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Speaker 2: AI will be very helpful. But it is an emerging

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Speaker 2: practice within the industry and one that is evolving very quickly.

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Speaker 2: So it's also going to present risks that you know

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Speaker 2: other companies how they use it and how they use

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Speaker 2: large language models and making sure the decision making is

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Speaker 2: very sound. So it's complicated, but definitely is benefiting the

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Speaker 2: business today.

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Speaker 1: Now, the insurance industry has a reputation maybe undeserved. For

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Speaker 1: let's say somebody has a claim their house burned down

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Speaker 1: or something, and the insurance adjuster comes out and says, well,

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Speaker 1: it really wasn't worth as much as you think, or

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Speaker 1: the damage wasn't as great. Is that a big problem anymore?

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Speaker 1: Or is that an unfair image?

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Speaker 2: I think it's an unfair image. I think it probably

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Speaker 2: perhaps is true you know years ago, but today you

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Speaker 2: know the contracts are you know much more? You know clear,

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Speaker 2: you know paying claims.

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Speaker 1: That's what we do.

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Speaker 2: I mean, we underwrite risks, but you know when we

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Speaker 2: have to show up in moments of matters in terms

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Speaker 2: of how we pay our claims, and the amount of

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Speaker 2: disputes are very small as a percentage of our overall portfolio.

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Speaker 2: And I don't think that that's a fair assessment.

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Speaker 1: So when you make a judgment that you're going to

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Speaker 1: charge somebody a certain premium, you think that you'll probably

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Speaker 1: make a little profit or some profit on the premium,

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Speaker 1: and generally you are you doing that now?

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Speaker 2: Yes? I mean you know that's not been AIG's passed.

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Speaker 2: From two thousand and nine to twenty nineteen, it lost

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Speaker 2: over thirty billion dollars in underwriting and so coming I

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Speaker 2: arrived in twenty seventeen with a great team that followed

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Speaker 2: me here and we began that underwriting journey, and so

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Speaker 2: now we do make underrunting profits. So for every dollar

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Speaker 2: we underwrite risk, you know, we make around you know,

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Speaker 2: ten to twelve cents of profit without the investment income.

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Speaker 1: Let's talk about the investment income. So you bring in

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Speaker 1: these premiums and all insurers then invest it and you

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Speaker 1: get great and people do invest it, I assume for you.

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Speaker 1: So what kind of return are you looking for on

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Speaker 1: your investment portfolio.

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Speaker 2: Seventy five percent of the portfolio tends to be fixed income,

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Speaker 2: and so in this new interest rate environment, actually the

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Speaker 2: investment income is going up, and then the remaining portion

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Speaker 2: will be in some form of alternative investments, such as

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Speaker 2: private equity or commercial real estate. And that's done very conservatively.

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Speaker 2: But we really are not going to win on just

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Speaker 2: the investment income. You really need to make an underwriting profit.

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Speaker 2: So we balance both, you know, very well.

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Speaker 1: So I should say private equity. My own firm does

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Speaker 1: have a relationship with AIG. So of course you can't

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Speaker 1: put more too much money in private decay, right, Your

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Speaker 1: investment professionals can't put too much money in that area.

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Speaker 2: Right, Absolutely, they do a great job.

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Speaker 1: So in terms of the investment return, though generally are

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Speaker 1: all insurers now basically making money both on investment return

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Speaker 1: and on premium underwriting? Is that? But basically the core

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Speaker 1: of the.

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Speaker 2: Business, generally speaking, the industry is making underrunning profit on

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Speaker 2: it's underwriting, and it's on the investment side as well.

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Speaker 1: So it's often said that Lloyd's of London, which would

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Speaker 1: ensure almost anything. So are there things that you won't

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Speaker 1: ensure If somebody comes to you and says I'm worried

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Speaker 1: about my wedding being rained out or something like that,

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Speaker 1: is there any kind of insurance that you won't provide.

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Speaker 2: Yeah, we are very specific in terms of what we

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Speaker 2: want to underwrite. I mean it has to be where

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Speaker 2: we have skill, where we can deploy capital and get

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Speaker 2: a fair return. So we don't really reflect the way

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Speaker 2: Lloyd's can ensure almost anything. It's much more, you know,

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Speaker 2: a traditional specialty company that would have real strong expertise

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Speaker 2: in scale in the areas that we underwrite.

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Speaker 1: So housing insurance is a big part of your business,

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Speaker 1: I assume, So what is the biggest risk for you

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Speaker 1: in providing insurance of people's homes.

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Speaker 2: Well, the complexity has been the density built up in

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Speaker 2: areas that have significant exposure if you think about the

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Speaker 2: southeast of the United States, for wind or wildfire in California,

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Speaker 2: what happened as a effect of the pandemic is that

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Speaker 2: you know, people were moving into those areas, and you know,

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Speaker 2: I'll make it up, but you know, a two and

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Speaker 2: a half million dollar house costs five million during the pandemic,

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Speaker 2: and people knocked down and put up a ten. So

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Speaker 2: all of a sudden, you had all this density in

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Speaker 2: areas that were already challenged to have enough insurance to

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Speaker 2: be able to respond to the individual homeowners. So I

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Speaker 2: think it's just become more complex. Add in you know,

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Speaker 2: more frequency of hurricanes and wildfire, and you just have

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Speaker 2: a market that is under a little bit of stress.

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Speaker 1: And property and casualty that is separate than automobile insurance.

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Speaker 1: An auto would go into you do auto and bill insurance? Yes,

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Speaker 1: And is that a risky business to be in these days?

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Speaker 1: Or drivers getting better? Or what about people that supposedly

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Speaker 1: don't have cars that don't have drivers. Are you worried

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Speaker 1: about that?

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Speaker 2: I am worried about that. I mean, you know, driverless

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Speaker 2: vehicles are a big exposure, but but I think that

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Speaker 2: you know, with AI quality of vehicles it's more predictable

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Speaker 2: than perhaps it was in the past.

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Speaker 1: So for your own home, who provides home insurance for you?

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Speaker 1: Ai g oh? And if you have a claim, do

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Speaker 1: you have any problem getting it paid?

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Speaker 2: Or I haven't had a claim, but I rather claim

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Speaker 2: I think I don't think I would.

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Speaker 1: Let's talk about how you got into the insurance business.

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Speaker 1: So your father was in the business, and did he say, Peter,

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Speaker 1: when you grow up, you should go in the insurance business.

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Speaker 1: Is that what happened?

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Speaker 2: No, you didn't. I mean the myth of him, you

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Speaker 2: know reading the insurance and reinsurance books at night is

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Speaker 2: not true. He always encouraged me to do and pursue

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Speaker 2: what I wanted. And quite frankly, I went to you know,

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Speaker 2: Boston College, graduated, and the reason why I want to

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Speaker 2: enter the insurance industry was I wanted to stay in

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Speaker 2: Boston and a company called the Hartford that was owned

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Speaker 2: by it T at the time, did offer me a

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Speaker 2: job if I would do training elsewhere to come back

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Speaker 2: to Boston, And so that was the reason I took

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Speaker 2: the job.

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Speaker 1: Now, some people might say that insurance is a boring business.

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Speaker 1: It doesn't attract people the way private equity does. But

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Speaker 1: is that not the case or you found that to

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Speaker 1: be interesting even right out of college.

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Speaker 2: Now I find it very interesting. I mean you're not

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Speaker 2: doing the same thing all the time when you start

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Speaker 2: in the industry. I mean you're learning to build relationships,

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Speaker 2: You're understand the quantitative nature of how to underwrite and

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Speaker 2: also the qualitative nature. So I liked it because I

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Speaker 2: had a balance of doing different things at once.

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Speaker 1: So what did you do after your first job in Boston?

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Speaker 2: Well, that's ironically I never made it back to Boston,

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Speaker 2: and so that's I stayed in New York. And early

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Speaker 2: on in my career I didn't think I could really

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Speaker 2: work in New York City, which has been, you know,

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Speaker 2: the predominant portion of my career. So I've always been

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Speaker 2: in big companies. Worked at ITT and then I worked

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Speaker 2: at General Electric and Marsh mcclennan after that.

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Speaker 1: All right, So you were working at Marsh mcclennan on

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Speaker 1: September eleventh of two thousand and one, and where were

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Speaker 1: you on that morning?

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Speaker 2: That morning? So was my sixth day of work at

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Speaker 2: Marsh McLennan, and I was on the fifty third floor

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Speaker 2: of Tower two that day to work and so what happened.

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Speaker 2: The first plane went into Tower one. I had seen it,

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Speaker 2: and so colleagues and I started to evacuate, nothing urgent,

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Speaker 2: but into the stairwell to make our way down and

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Speaker 2: made it to about the fortieth floor when the second

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Speaker 2: plane went into the building, which I didn't know what

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Speaker 2: it was at the time. I'd figured either Tower one

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Speaker 2: had tipped over or something else had come into the building.

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Speaker 2: And you know, we had a sense of urgency.

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Speaker 1: Of getting was there a mass rushed down the stairways.

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Speaker 2: There was, I mean it was orderly, but it was

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Speaker 2: started to get panicky of trying to get out of

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Speaker 2: the building and rush our way down the stairwell.

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Speaker 1: So you got out of the building how much before

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Speaker 1: the building collapsed.

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Speaker 2: I was probably twenty minutes, you know, north of the

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Speaker 2: building when it collapsed. I was never in danger of

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Speaker 2: you know, having soot or or other things on me

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Speaker 2: once the building collapsed.

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Speaker 1: But as soon as you got out of the building,

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Speaker 1: you didn't look up there and say, oh, I see

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Speaker 1: what it's going to survive you You ran somewhere.

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Speaker 2: Yeah, No, I'm actually met a friend and we happened

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Speaker 2: to you know, we walked north to one hundred and

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Speaker 2: twenty fifth Street over the course of the day to

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Speaker 2: get out of the city.

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Speaker 1: And how many of your colleagues died Almost three hundred

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Speaker 1: that day, three hundred colleagues died from Marsh mcclennanth. Yes, okay,

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Speaker 1: So you didn't get out of that and say I've

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Speaker 1: had enough of Wall Street, I've had enough of insurance.

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Speaker 1: I'm going to go into something else. Now.

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Speaker 2: It's a unique part about our business is that, you know,

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Speaker 2: in you know, major disasters or you know, things that

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Speaker 2: happened like that, you know, our clients need us, and

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Speaker 2: you know, so it was immediately you know, calibrating, focusing

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Speaker 2: on helping you know, I was in the reinsurance business

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Speaker 2: at that time, so helping insurance companies, you know, get

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Speaker 2: back into business and helping raise capital and you know,

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Speaker 2: helping them assess what they needed to do going forward.

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Speaker 1: So today, AIG over the years has been a gigantic company,

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Speaker 1: one of the largest, maybe the larger at one time

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Speaker 1: market cap insurance in the world. But then during the

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Speaker 1: Great Recession it had some problems and ultimately the government

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Speaker 1: had to come in with a bailout. You could call it.

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Speaker 1: One hundred and eighty billion dollar guaranteed loan or bailout.

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Speaker 1: Have you paid that back yet?

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Speaker 2: Yes, that's been paid back. You know, well before I

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Speaker 2: arrived at the company.

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Speaker 1: And did the government make a profit on that?

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Speaker 2: They did, Yes, they made a profit. There was interest

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Speaker 2: and a profit.

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Speaker 1: So what caused that was basically too much insurance on

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Speaker 1: I guess it was high risk mortgages.

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Speaker 2: Yeah, it was a financial products product that had you know,

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Speaker 2: credit related and so that you know, created a you know,

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Speaker 2: impact on liquidity.

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Speaker 1: So, Peter, when you took over as the CEO of

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Speaker 1: this company, it wasn't as as good as shape as

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Speaker 1: it appears to be now. So what did you do

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Speaker 1: to turn it around? And what are you most proud

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Speaker 1: of having achieved in your time as CEO so far?

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Speaker 2: Well, the the thing I'm proud of the most is

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Speaker 2: just the number of people that you know, came to

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Speaker 2: AIG and actually people that stayed to come together as

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Speaker 2: a organization to actually try and improve our underwriting, our

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Speaker 2: operational capabilities and there in our financial performance. I mean,

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Speaker 2: we had to shed relative to our balance sheet, one

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Speaker 2: point four trillion dollars of exposure since we started, and

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Speaker 2: so that was a dramatic change we had to do

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Speaker 2: ten operational programs at once to get the foundation stability

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Speaker 2: for the company for the future. And I actually think

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Speaker 2: that part of the pandemic benefited us because we compressed

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Speaker 2: that transformation and did it very fast and made dramatic

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Speaker 2: improvements for the company. And then the financial performance started

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Speaker 2: to really manifest itself from the efforts that we made

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Speaker 2: on the underwriting side and the operation side. So it's

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Speaker 2: just been a tremendous effort.

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Speaker 1: As we've talked about this here now and pretty much

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Speaker 1: in the P and C business, property and casualty, you're

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Speaker 1: getting out of the life insurance business over time. But

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Speaker 1: explain to me why the life insurance business wouldn't be

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Speaker 1: a better business because you know, people are going to die,

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Speaker 1: very predictable actual aries continue when they're going to die.

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Speaker 1: Is why is that business not as good as the

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Speaker 1: property and casualty business.

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Speaker 2: Well, it's a very good business. The property and casualty

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Speaker 2: businesses is totally different. I think the complexity in life

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Speaker 2: insurance business is just you know, they have so much

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Speaker 2: investment assets. It's a spread business and one that has

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Speaker 2: really different, you know, dynamics that drive its outcomes.

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Speaker 1: Now I see lots of ads on television for insurance,

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Speaker 1: sometime home insurance, so forth. But I don't see a

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Speaker 1: lot of AIG ads here you appealing to people like

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Speaker 1: me who are watching television or you're going to institutional market.

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Speaker 2: We have, you know, a distribution of agents and brokers

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Speaker 2: that we're really a business to business and so we

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Speaker 2: source our business through that distribution channel. So us advertising

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Speaker 2: to you know, the end consumer has limited value in

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Speaker 2: the products that we actually underwrite.

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Speaker 1: So today, the insurance business, generally in the United States,

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Speaker 1: would you say it's a reasonably healthy business today?

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Speaker 2: I would. I think balance sheets are strong, I think

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Speaker 2: the returns are are very good, and I think there's

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Speaker 2: positive momentum.

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Speaker 1: So you see a lot about what's going on the

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Speaker 1: economy because you underwrite a lot of active is what

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Speaker 1: is your biggest worry about the economy today or you

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Speaker 1: think we're going to go into recession? Are you worried

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Speaker 1: about inflation? High interest rates?

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Speaker 2: I worry about it all. I mean, but you know,

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Speaker 2: for insurance, I mean certainly inflation is one because of

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Speaker 2: you know, we carry reserves for many years on our

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Speaker 2: balance sheet, and you know what the effect is of

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Speaker 2: inflation as we pay claims over the long term. You know,

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Speaker 2: the investment rates, as I said, with fixed income, that's

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Speaker 2: really strong for us in terms of reinvestment rates and

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Speaker 2: so allows us to do very well on the investment side.

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Speaker 2: And I do worry about the you know, global economy.

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Speaker 2: You know, GDP has been holding up, but certainly like

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Speaker 2: in the United States, I mean a big part of

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Speaker 2: the GDP is healthcare and tech, and so seeing consumer

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Speaker 2: spending and driving sales through retail is something that we watch,

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Speaker 2: you know frequently.

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Speaker 1: What percentage of your businesses or insurance overseas and what

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Speaker 1: percentages in the United States.

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Speaker 2: It's about fifty to fifty overseas and the United States.

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Speaker 1: What are the number of employees you have now we.

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Speaker 2: Have a little over thirty thousand employees at AIG and

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Speaker 2: probably twenty thousand of you know, employee equivalents in terms

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Speaker 2: of what we outsource through you know, a back office

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Speaker 2: or through technology.

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Speaker 1: And today your market capitalization is roughly forty five billion

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Speaker 1: something like that. And today do you spend any time

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Speaker 1: in Washington, d C. Saying to regulators you're not doing

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Speaker 1: a good job regulating us, or you members of Congress

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Speaker 1: do a better job and taking care of the debt repayment.

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Speaker 1: Do you do you spend any time in Washington?

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Speaker 2: I do spend time in Washington and spend time with lawmakers.

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Speaker 2: I mean the complexity of insurance is that we're state

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Speaker 2: regulated and so you know, spending time with various state

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Speaker 2: regulators and you know FCA and FSA in the UK

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Speaker 2: and Japan respectively, is where I spend more of my time.

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Speaker 1: And do you find when you meet with members of

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Speaker 1: Congress it's an uplifting experience.

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Speaker 2: You know, getting compromise and talking through specific issues is

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Speaker 2: more challenging than it's been in the past, but you know,

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Speaker 2: we're trying to make progress now.

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Speaker 1: You go to a lot of CEO gatherings, I assume

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Speaker 1: your members of business, things like the business round Table,

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Speaker 1: business counsel and things like that. When you talk to

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Speaker 1: other CEOs, not just in your industry, what are they

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Speaker 1: most worried about today? They political divisiveness in Washington, inflation,

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Speaker 1: high interest rates. What do you think people are most

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Speaker 1: worried about?

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Speaker 2: I think those three always come up. And the geopolitical environment.

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Speaker 2: I also think state sponsored you know, cyber attacks and

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Speaker 2: what does that do to you know, a company all

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Speaker 2: of that is getting a lot of attention, and I

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Speaker 2: think it's doesn't matter what industry you're in, it has

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Speaker 2: its impact. I think also global expansion, the resistance for

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Speaker 2: you know, acquisitions and support you know for companies to

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Speaker 2: be able to acquire you know, big businesses outside of

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Speaker 2: the United States gets challenging as well.

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Speaker 1: So as the CEO of this company, your biggest concern

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Speaker 1: is always increasing the share price or providing good service

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Speaker 1: to your customers. What do you worry about the most

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Speaker 1: in terms of the job of being CEO.

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Speaker 2: Well, it's a great privilege to be a CEO of

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Speaker 2: a company like this, and we've been in a massive

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Speaker 2: turnaround and so fortunate to have so many good people

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Speaker 2: with me at at AIG. I think with I have

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Speaker 2: the longest tenure of six years of all of my executives,

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Speaker 2: and I think over sixty percent of our top one

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Speaker 2: hundred are new to the company, and so like bringing

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Speaker 2: that together to actually drive the outcomes that we have

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Speaker 2: has been incredibly rewarding and taking as you said, there's

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Speaker 2: short term you know demands on CEOs, but taking a

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Speaker 2: long term view of a business and building foundational you

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Speaker 2: know capabilities that are enable us to do much more

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Speaker 2: for our clients over the long term. Adapting to AI

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Speaker 2: and adapting to you know, a rapidly changing world is

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Speaker 2: a high priority for me.

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Speaker 1: So if the President of the United States called you

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Speaker 1: and said, you know, you really know a lot about insurance,

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Speaker 1: you know a lot about risk, why don't you come

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Speaker 1: into the US government and help assess risk we have?

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Speaker 2: You would say, what I'm better suited for a public

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Speaker 2: company is what?

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Speaker 1: Ever? So you're not probably going to go into the

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Speaker 1: public sector anytimes.

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Speaker 2: That probably is not in the cards for me.

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Speaker 1: Well, as we talked today, there are lots of problems

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Speaker 1: around the world. One of them is what's going on

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Speaker 1: in Israel. Another one is what's going on in Ukraine.

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Speaker 1: How do you assess those risks? For example, did you

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Speaker 1: ever provide insurance to people in Ukraine?

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Speaker 2: We did provide. We had a business in Russia, you know,

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Speaker 2: prior to the Russia Ukraine conflict, we did not have

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Speaker 2: a big business in Ukraine. But through you know, Lloyd's

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Speaker 2: we did have exposure to some classes of business, you know,

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Speaker 2: through the war. And so you know, assessing that is

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Speaker 2: very complicated and one that you need to manage. You know,

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Speaker 2: how much you're going to underwrite a specific class that

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Speaker 2: could have, you know, political violence or a war or terrorism.

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Speaker 1: So let's suppose I own a big factory, a semiconductor

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Speaker 1: chip factory in Taiwan, and I come to you and say,

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Speaker 1: you know, I just want to get some insurance against

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Speaker 1: it possibility that China might invade and destroy or take

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Speaker 1: over my plant. Is that the kind of thing you

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Speaker 1: would do or that's too risky?

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Speaker 2: That would be too risky. Yeah, I think that there's

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Speaker 2: there's some portions of what we call violence you know coverage.

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Speaker 2: But you know, in areas where we know that there's

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Speaker 2: an exposure, it gets very hard to underwrite that, and

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Speaker 2: so we would have very limited capacity to be able

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Speaker 2: to do something like that.

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Speaker 1: But you don't provide war insurance, then pretty much do

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Speaker 1: you provide flood insurance. I have a home in Nantucket

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Speaker 1: that's right on the water there, and I'm always worried

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Speaker 1: when the flood's going to come. So can I get

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Speaker 1: flood insurance or is that hard to get these days?

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Speaker 2: It's hard to get. But we do provide flood insurance,

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Speaker 2: as does the government.

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Speaker 1: And what's the fastest growing area of insurance that people

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Speaker 1: are for property and casual what are people most interested in?

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Speaker 1: Just home insurance?

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Speaker 2: Home insurance has been one of the more complicated ones,

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Speaker 2: you know, across the United States. But I think, you know,

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Speaker 2: one of the biggest growing areas is what we call

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Speaker 2: access and surplus lines. It's a market that sits alongside

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Speaker 2: the regulated market and that has been growing significantly across

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Speaker 2: the industry as well as fraig.

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Speaker 1: And what's been the biggest challenge for the insurance industry

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Speaker 1: over the last five or ten.

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Speaker 2: Years, I think it's understanding you know, these unpredictable risks

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Speaker 2: of whether it was the pandemic, understanding what could happen,

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Speaker 2: you know, with potential war breakout, but also you know,

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Speaker 2: the climate change. As I said before, having that type

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Speaker 2: of hurricane activity. We've had a hundred natural disasters reported

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Speaker 2: through nine months of this year that that just hasn't

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Speaker 2: happened in the past.

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Speaker 1: So, if I am trying to learn the insurance business,

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Speaker 1: what's the most important thing as an outsider wants to

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Speaker 1: assess whether the industry is a good industry to invest in.

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Speaker 1: What are the inndition that people like me should look at.

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Speaker 2: I always think depending on how sophisticated the individuals looking

441
00:20:34,760 --> 00:20:37,159
Speaker 2: at at companies, always the strength of the balance sheet,

442
00:20:37,840 --> 00:20:41,680
Speaker 2: the consistency of performance is really important because if you

443
00:20:41,760 --> 00:20:44,359
Speaker 2: end up getting a lot of surprises from catastrophes or

444
00:20:44,800 --> 00:20:47,040
Speaker 2: you know, other variables, it's very hard to predict what's

445
00:20:47,080 --> 00:20:49,040
Speaker 2: going to happen with that insurance company in the future.

446
00:20:49,680 --> 00:20:51,640
Speaker 2: And then i'd look at the leadership in terms of,

447
00:20:51,680 --> 00:20:54,760
Speaker 2: you know, their track record in you know, developing business

448
00:20:54,800 --> 00:20:56,960
Speaker 2: that have sustainable, long term profitability.

449
00:20:57,359 --> 00:21:00,520
Speaker 1: Now, the insurance business has been historically a very strong

450
00:21:00,560 --> 00:21:02,720
Speaker 1: one of the United States. Are we still the leader

451
00:21:02,760 --> 00:21:05,640
Speaker 1: in global insurance? Are there companies outside the United States

452
00:21:05,640 --> 00:21:06,920
Speaker 1: that are even more significant now?

453
00:21:07,600 --> 00:21:12,080
Speaker 2: Very big companies in China, very big companies in Japan market.

454
00:21:12,359 --> 00:21:15,679
Speaker 2: And there's very big companies market cap wise in Europe.

455
00:21:15,720 --> 00:21:17,960
Speaker 2: And so I think that those are the four areas

456
00:21:18,000 --> 00:21:21,160
Speaker 2: including the United States, that have very large market cap

457
00:21:21,280 --> 00:21:23,560
Speaker 2: multinational insurance companies.

458
00:21:23,640 --> 00:21:26,800
Speaker 1: And today and AIG, what is the biggest challenge you

459
00:21:27,119 --> 00:21:29,560
Speaker 1: face as the CEO of AIG. What are you most

460
00:21:29,560 --> 00:21:32,080
Speaker 1: worried about? Well, all of.

461
00:21:32,040 --> 00:21:36,560
Speaker 2: The you know what's happening, you know, geopolitically, we've just

462
00:21:36,600 --> 00:21:39,520
Speaker 2: come out of a pandemic. I mean, the complexities across

463
00:21:39,520 --> 00:21:42,000
Speaker 2: the world and the fragility of you know, what might

464
00:21:42,040 --> 00:21:44,240
Speaker 2: happen in the future is is what I worry about,

465
00:21:44,320 --> 00:21:46,359
Speaker 2: you know the most, because there's things, you know, if

466
00:21:46,359 --> 00:21:48,840
Speaker 2: you told me five years ago you're going to come

467
00:21:48,840 --> 00:21:50,440
Speaker 2: in be the CEO, You're going to deal with the

468
00:21:50,440 --> 00:21:54,480
Speaker 2: global pandemic, two wars, you know, potential, you know, political

469
00:21:55,440 --> 00:21:59,480
Speaker 2: you know, tension across the world, and also dealing with

470
00:21:59,680 --> 00:22:02,600
Speaker 2: financial you know, challenges that that that's a lot. And

471
00:22:02,640 --> 00:22:05,280
Speaker 2: so making sure that we you know, focus and deliver

472
00:22:05,400 --> 00:22:07,960
Speaker 2: on what we you know, can do as an insurance

473
00:22:07,960 --> 00:22:10,600
Speaker 2: company and adapt all the changes that are going on

474
00:22:10,640 --> 00:22:11,119
Speaker 2: around us.

475
00:22:11,440 --> 00:22:14,320
Speaker 1: So for young professionals who might be watching, who say,

476
00:22:14,359 --> 00:22:16,040
Speaker 1: while I'm looking for a job, maybe I should get

477
00:22:16,040 --> 00:22:18,560
Speaker 1: in the insurance business. Why should want somebody want to

478
00:22:18,560 --> 00:22:20,680
Speaker 1: come in the insurance business? What makes it so exciting?

479
00:22:21,160 --> 00:22:23,280
Speaker 2: I think our purpose and what we do for a

480
00:22:23,320 --> 00:22:28,160
Speaker 2: living is is very you know, meaningful, Like we keep businesses, societies,

481
00:22:28,840 --> 00:22:32,480
Speaker 2: uh you know, cities moving after you know, natural disasters

482
00:22:32,680 --> 00:22:36,639
Speaker 2: or you know, moving claims and allowing companies to build.

483
00:22:36,680 --> 00:22:39,040
Speaker 2: And you know, a lot of times in order to lend,

484
00:22:39,040 --> 00:22:40,880
Speaker 2: you need to have insurance. And so I think it's

485
00:22:40,920 --> 00:22:44,280
Speaker 2: a uh, you know, industry that really doesn't get its

486
00:22:44,359 --> 00:22:46,560
Speaker 2: full credit for you know, all that it does. And

487
00:22:46,640 --> 00:22:50,600
Speaker 2: I think our purpose is incredibly meaningful and we show

488
00:22:50,680 --> 00:22:52,680
Speaker 2: up in moments that are really critical for you know,

489
00:22:52,720 --> 00:22:53,800
Speaker 2: our customers and clients.

490
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Speaker 1: Well, listen, you've done a very good job of dealing

491
00:22:56,480 --> 00:22:59,440
Speaker 1: with a complicated situation because AIG has been in a

492
00:22:59,480 --> 00:23:02,480
Speaker 1: turnaround ever since the government bailout. I guess I would

493
00:23:02,520 --> 00:23:05,240
Speaker 1: call it bailout and today you would say it's financial

494
00:23:05,240 --> 00:23:06,200
Speaker 1: shape is pretty good.

495
00:23:06,560 --> 00:23:09,320
Speaker 2: I think it's very good. The progress that we've made,

496
00:23:09,320 --> 00:23:12,719
Speaker 2: again with having so many tremendous people here that had

497
00:23:12,760 --> 00:23:15,359
Speaker 2: a single purpose of putting AIG back to being an

498
00:23:15,400 --> 00:23:19,199
Speaker 2: industry leader, that we've strengthened sort of every component of

499
00:23:19,240 --> 00:23:23,520
Speaker 2: the company. The balance sheet, underwriting capabilities, our investment portfolio

500
00:23:23,920 --> 00:23:28,119
Speaker 2: is much simpler, the company simpler, operations are streamlined. So

501
00:23:28,119 --> 00:23:30,520
Speaker 2: I think we've really made enormous progress and feel like

502
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Speaker 2: we have a lot to do still.

503
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Speaker 1: Thanks for listening to hear more of my interviews. You

504
00:23:35,320 --> 00:23:39,480
Speaker 1: can subscribe and download my podcast on Spotify, Apple, or

505
00:23:39,480 --> 00:23:40,280
Speaker 1: wherever you listen.