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AIG’s woes multiply
Leading US and world non-life insurer AIG, a former target of now-disgraced ex-New York governor Eliot Spitzer over alleged past accounting and executive rewarding irregularities, is in the firing line again. Hank Greenberg, the company’s legendary founder and 12 per cent shareholder who has been waging an unremitting campaign against its present management, has now been notified by the US Securities and Exchange Commission that he could face civil charges over past reinsurance transactions between AIG and General Re, an insurance subsidiary of Warren Buffett's Berkshire Hathaway group.
At issue are deals done during Greenberg’s tenure which allegedly inflated AIG’s reserves by $500 million (£250 million). Greenberg, whose criticisms of his successors have been prompted by heavy credit-related write-downs, denies any wrongdoing.
French insurer AXA is set to launch a fresh assault on the UK market with a new investment management company Architas Multi-Manager. This stand-alone investment business will help AXA upgrade its existing platform for offering customers access to a wide range of investment funds, known as ‘open architecture’.
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