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Speaker 1: This is my kitchen table and also my filing system.

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Speaker 1: Over much of the past three decades, I've been an investor.

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Speaker 1: The highest calling of mankind I've often thought was private equity.

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Speaker 1: And then I started interviewing, Oh well, I watched your interview,

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Speaker 1: thoughs I know how to do some interview I've learned

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Speaker 1: from doing my interviews how leaders make it to the top.

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Speaker 1: I asked him how much he wanted.

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Speaker 2: He said two point fifty.

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Speaker 1: I said fine. I didn't negotiate with him.

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Speaker 2: I did no due diligence till.

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Speaker 1: I have something I'd like to sell, and how they

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Speaker 1: stay there? You don't feel inadequate now because being only

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Speaker 1: the second wealthiest man that rod is that right. For

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

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

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

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

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

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

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

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

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Speaker 1: So 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, there are really

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

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

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Speaker 1: insurer's point of view, cover the risk. And the second

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

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

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

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Speaker 1: is it harder today because in inflation is so high

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Speaker 1: to assess the risk that you might have in ensuring

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Speaker 1: somebody's home or property.

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Speaker 2: At a property and casualty company, it's much more complicated

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Speaker 2: to 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 Casualty insure iss right.

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Speaker 2: That's correct, and then that is true. Five out of

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

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Speaker 2: dollars of natural disaster losses in our industry. That's never

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Speaker 2: 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 it definitely is benefiting

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Speaker 2: the 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 fair 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 the twenty nineteen it

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Speaker 2: lost over thirty billion dollars in underwriting. And so coming

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Speaker 2: in I arrived in twenty seventeen with a great team

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Speaker 2: that followed me here and we began that underwriting journey.

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Speaker 2: And so now we do make underwriting profits. So for

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

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Speaker 2: you know, ten to twelve cents of profit without the

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Speaker 2: 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 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 too much money in private equity, right, Your investment

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Speaker 1: 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 undwriting as that but basically the core.

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Speaker 2: Of the business, generally speaking, the industry making underrunning profit

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Speaker 2: on 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 ensure?

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

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Speaker 1: my wedding being rained out or something like that. Is

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Speaker 1: 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 a traditional

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Speaker 2: specialty company that would have real strong expertise and scale

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Speaker 2: 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 to 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 and Cania.

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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 2: A auto would go into you do.

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Speaker 1: Auto and bill insurance. Yes, And is that a risky

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Speaker 1: business to be in these days? Or drivers getting better?

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Speaker 1: Or what about people that supposedly don't have cars, that

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Speaker 1: don't have drivers. Are you worried 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 I think that you know,

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Speaker 2: with AI quality of vehicles, it's more predictable than perhaps

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Speaker 2: it was in the past.

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

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Speaker 1: And if you have a claim, do you have any

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Speaker 1: problem getting it paid?

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

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

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Speaker 1: Let's talk about how you got in the insurance business. So, uh,

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Speaker 1: 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. No, you didn't.

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Speaker 2: I mean the myth of him, you know, reading the

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Speaker 2: insurance and reinsurance books at night, is not true. He

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Speaker 2: always encouraged me to do and pursue what I wanted,

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Speaker 2: and quite frankly, I went to you know, Boston College, graduated,

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Speaker 2: and the reason why I want to enter the insurance

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Speaker 2: industry was I wanted to stay in Boston and a

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Speaker 2: company called the Hartford that was owned by ITT at

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Speaker 2: the time, did offer me a job if I would

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Speaker 2: do training elsewhere to come back to Boston, and so

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Speaker 2: that was the reason I took 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 company, worked at it, 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 mcclennan, and I was on the fifty third floor

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Speaker 2: of Tower two that day to work.

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Speaker 1: 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 of

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Speaker 2: getting was.

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Speaker 1: 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 other things on me once

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Speaker 2: 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 the gigantic company,

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

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Speaker 1: market cap insurers 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

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Speaker 1: it 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 thing I'm proud of the most is just

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

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

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

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

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

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

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Speaker 2: that was a dramatic change. We had to you know,

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

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

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

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

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

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Speaker 2: started to really you know, manifest itself from the efforts

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Speaker 2: that we made on the underwriting side and the operation side.

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Speaker 2: So it's just been a tremendous.

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Speaker 1: Effort as we've talked about this year now and pretty

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Speaker 1: much in the P and C business property and casualty,

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Speaker 1: you're getting out of the life insurance business over time.

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

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

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Speaker 1: to die, very predictable actuarias 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: investable 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. Are 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 are very good, and I think

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Speaker 2: there's 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 activities. What is

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

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

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Speaker 1: 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 personage 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 2: But what are the number of employees you have now

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Speaker 2: we have a little over thirty thousand employees at AIG

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Speaker 2: and probably another twenty thousand of you know, employee equivalents

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Speaker 2: in terms of what we outsource through you know, a

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Speaker 2: back office 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 regulated,

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

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

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Speaker 2: 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 Congress.

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Speaker 1: It's an uplifting experience.

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Speaker 2: You know, getting compromised 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: or the Business counsel and things like that. When you

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Speaker 1: talk to other CEOs, not just in your industry, what

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Speaker 1: are they 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: Why should somebody want to come into the insurance business?

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Speaker 1: What makes it so exciting?

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Speaker 2: I think it's a you know, industry that really doesn't

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Speaker 2: get its full credit for you know, all that it does,

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Speaker 2: and we show up in moments that are really critical

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Speaker 2: for you know, our customers and clients.

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Speaker 1: As we talked today, there are lots of problems around

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

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

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Speaker 1: you assess those risks? For example, did you ever provide

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Speaker 1: 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 political violence, you

400
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Speaker 2: know coverage. But you know, in areas where we know

401
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Speaker 2: that there's an exposure, it gets very hard to underwrite

402
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Speaker 2: that and so we would have very limited capacity to

403
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Speaker 2: be able to do something like that.

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

405
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Speaker 1: you provide flood insurance. I have a home in Nantucket

406
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Speaker 1: that's right on the water there, and I'm always worried

407
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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 casualty? What are people most interested in?

413
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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,

415
00:19:58,440 --> 00:20:00,760
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: excess 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 years.

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

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

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Speaker 2: with potential war breakout, but also you know the climate change.

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Speaker 2: As I said before, having that type of hurricane activity.

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Speaker 2: We've had one hundred natural disasters reported through nine months

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Speaker 2: of this year. That just hasn't 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

430
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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 and

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Speaker 2: looking at at companies, always the strength of the balance sheet,

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Speaker 2: the consistency of performance is really important because if you

435
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Speaker 2: end up getting a lot of surprises from catastrophes or

436
00:21:04,720 --> 00:21:07,000
Speaker 2: you know, other variables, it's very hard to predict what's

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Speaker 2: going to happen with that insurance company in the future.

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Speaker 2: And then I'd look at the leadership in terms of,

439
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Speaker 2: you know, their track record in you know, developing business

440
00:21:14,720 --> 00:21:16,880
Speaker 2: that have sustainable, long term profitability.

441
00:21:17,280 --> 00:21:20,440
Speaker 1: Now, the insurance business has been historically a very strong

442
00:21:20,480 --> 00:21:22,679
Speaker 1: one in the United States. Are we still the leader

443
00:21:22,720 --> 00:21:25,560
Speaker 1: in global insurance? Are there companies outside the United States

444
00:21:25,600 --> 00:21:26,880
Speaker 1: that are even more significant now?

445
00:21:27,560 --> 00:21:32,040
Speaker 2: Very big companies in China, very big companies in Japan market.

446
00:21:32,280 --> 00:21:35,639
Speaker 2: And there's very big companies market cap wise in Europe.

447
00:21:35,640 --> 00:21:37,879
Speaker 2: And so I think that those are the four areas,

448
00:21:37,920 --> 00:21:41,080
Speaker 2: including the United States, that have very large market cap

449
00:21:41,240 --> 00:21:43,520
Speaker 2: multinational insurance companies.

450
00:21:43,560 --> 00:21:46,720
Speaker 1: And today and AIG, what is the biggest challenge you

451
00:21:47,080 --> 00:21:49,480
Speaker 1: face as the CEO of AIG. What are you most

452
00:21:49,480 --> 00:21:50,080
Speaker 1: worried about?

453
00:21:50,880 --> 00:21:55,480
Speaker 2: Well, all of the you know what's happening, you know, geopolitically,

454
00:21:56,160 --> 00:21:58,040
Speaker 2: we've just come out of a pandemic. I mean, the

455
00:21:58,040 --> 00:22:01,560
Speaker 2: complexities across the world and the fragility of you know,

456
00:22:01,560 --> 00:22:03,600
Speaker 2: what might happen in the future is is what I

457
00:22:03,640 --> 00:22:06,200
Speaker 2: worry about, you know the most, because there's things. You know,

458
00:22:06,200 --> 00:22:08,600
Speaker 2: if you told me five years ago you're going to

459
00:22:08,640 --> 00:22:10,320
Speaker 2: come in be the CEO, You're going to deal with

460
00:22:10,320 --> 00:22:13,800
Speaker 2: the global pandemic, two wars, you know, potential, you know,

461
00:22:13,880 --> 00:22:19,320
Speaker 2: political you know, tension across the world and also dealing

462
00:22:19,359 --> 00:22:22,400
Speaker 2: with financial you know challenges that that that's a lot,

463
00:22:22,440 --> 00:22:24,919
Speaker 2: and so making sure that we you know, focus and

464
00:22:24,920 --> 00:22:27,320
Speaker 2: deliver on what we uh, you know, can do as

465
00:22:27,320 --> 00:22:30,240
Speaker 2: an insurance company and adapt all the changes that are

466
00:22:30,240 --> 00:22:31,080
Speaker 2: going on around us.

467
00:22:31,400 --> 00:22:34,440
Speaker 1: So for young professionals who might be watching, who say, well,

468
00:22:34,480 --> 00:22:36,000
Speaker 1: I'm looking for a job, maybe I should get in

469
00:22:36,000 --> 00:22:38,600
Speaker 1: the insurance business. Why should want somebody want to come

470
00:22:38,600 --> 00:22:41,199
Speaker 1: into the insurance business? What makes it so exciting? I

471
00:22:41,200 --> 00:22:41,720
Speaker 1: think our.

472
00:22:41,560 --> 00:22:44,239
Speaker 2: Purpose and what we do for a living is is

473
00:22:44,400 --> 00:22:48,879
Speaker 2: very you know, meaningful, Like we keep businesses, societies, uh

474
00:22:49,240 --> 00:22:52,719
Speaker 2: you know, cities moving after you know, natural disasters or

475
00:22:53,200 --> 00:22:57,440
Speaker 2: you know, moving claims and allowing companies to build and

476
00:22:57,520 --> 00:22:58,960
Speaker 2: you know a lot of times in order to lend,

477
00:22:59,000 --> 00:23:00,800
Speaker 2: you need to have insurance. And so I think it's

478
00:23:00,840 --> 00:23:04,480
Speaker 2: a you know industry that really doesn't get its full

479
00:23:04,560 --> 00:23:06,639
Speaker 2: credit for you know, all that it does. And I

480
00:23:06,640 --> 00:23:10,720
Speaker 2: think our purpose is incredibly meaningful, and we show up

481
00:23:10,720 --> 00:23:13,760
Speaker 2: in moments that are really critical for our customers and clients.

482
00:23:14,119 --> 00:23:16,399
Speaker 1: Well, listen, you've done a very good job of dealing

483
00:23:16,440 --> 00:23:20,000
Speaker 1: with a complicated situation. Because AIG has been in a turnaround.

484
00:23:20,359 --> 00:23:22,600
Speaker 1: Ever since the government bailout, I guess I would call

485
00:23:22,640 --> 00:23:25,480
Speaker 1: it bailout, and today you would say it's financial shape

486
00:23:25,520 --> 00:23:26,160
Speaker 1: is pretty good.

487
00:23:26,520 --> 00:23:29,200
Speaker 2: I think it's very good. The progress that we've made,

488
00:23:29,280 --> 00:23:32,680
Speaker 2: again with having so many tremendous people here that had

489
00:23:32,680 --> 00:23:35,320
Speaker 2: a single purpose of putting AIG back to being an

490
00:23:35,320 --> 00:23:39,119
Speaker 2: industry leader, that we've strengthened sort of every component of

491
00:23:39,160 --> 00:23:43,440
Speaker 2: the company, the balance sheet, underwriting capabilities, our investment portfolio

492
00:23:43,880 --> 00:23:48,040
Speaker 2: is much simpler, the company simpler, operations are streamlined. So

493
00:23:48,080 --> 00:23:50,439
Speaker 2: I think we've really made enormous progress and feel like

494
00:23:50,440 --> 00:23:51,520
Speaker 2: we have a lot to do still.