BRK's AIG Coup

[twacowfca]

The senior leadership of AIG's most successful P&C businesses have quit during this time of firming rates to form a new startup E&S insurer within Berkshire.  The effect on AIG in the short run should be minimal, but the benefit to BRK long term is enormous: extension of what Ajit has wanted to do for a long time, roll up his sleeves and go after business in the Hurley  Burley of the marketplace instead of sitting on the sidelines as an insurer of last resort.

 

What we are seeing is the transformation of BRK's insurance business into what AIG was several years ago under Greenberg when when it was the most dynamic large insurer on the planet, minus all the dodgy stuff AIG got into in the last several years.  This can only mean that very good things should happen in the future as BRK continues to grow its no cost float. :)

[Parsad]

The senior leadership of AIG's most successful P&C businesses have quit during this time of firming rates to form a new startup E&S insurer within Berkshire.  The effect on AIG in the short run should be minimal, but the benefit to BRK long term is enormous: extension of what Ajit has wanted to do for a long time, roll up his sleeves and go after business in the Hurley  Burley of the marketplace instead of sitting on the sidelines as an insurer of last resort.

 

What we are seeing is the transformation of BRK's insurance business into what AIG was several years ago under Greenberg when when it was the most dynamic large insurer on the planet, minus all the dodgy stuff AIG got into in the last several years.  This can only mean that very good things should happen in the future as BRK continues to grow its no cost float. :)

 

Yes, quite a shocker in the insurance business I think.  Especially considering AIG's turnaround and existing leadership.  Good for Berkshire though.  Cheers!

[onyx1]

The senior leadership of AIG's most successful P&C businesses have quit during this time of firming rates to form a new startup E&S insurer within Berkshire.  The effect on AIG in the short run should be minimal, but the benefit to BRK long term is enormous: extension of what Ajit has wanted to do for a long time, roll up his sleeves and go after business in the Hurley  Burley of the marketplace instead of sitting on the sidelines as an insurer of last resort.

 

What we are seeing is the transformation of BRK's insurance business into what AIG was several years ago under Greenberg when when it was the most dynamic large insurer on the planet, minus all the dodgy stuff AIG got into in the last several years.  This can only mean that very good things should happen in the future as BRK continues to grow its no cost float. :)

 

Yes, quite a shocker in the insurance business I think.  Especially considering AIG's turnaround and existing leadership.  Good for Berkshire though.  Cheers!

 

Four senior AIG E&S managers today, and more sure to follow.  This could turn into a meaningful headwind for other E&S competitors including MKL, WRB, FFH, and Y.

[zarley]

Here's a link to a short story about it. Not much more info than the OP though . . .

 

http://www.businessinsurance.com/article/20130425/NEWS04/130429867?tags=%7C306%7C76%7C78

 

Four senior executives from American International Group Inc., including Peter Eastwood, president and CEO of AIG Property/Casualty—The Americas, resigned Thursday to join rival insurer Berkshire Hathaway Inc.

 

In addition to Mr. Eastwood, David J. Bresnahan, president of Lexington Insurance Co., David Fields, chief reinsurance officer of AIG, and Sanjay Godhwani, president of AIG's property/casualty group—Latin America and the Caribbean all resigned from the insurer.

 

Messrs. Eastwood, Bresnahan and Godhwani had all spent significant portions of their career at Lexington, AIG's Boston-based excess and surplus lines unit. Mr. Eastwood took over the leadership of Lexington, after its long-time CEO Kevin Kelley resigned in 2008 to join rival Ironshore Inc.

[jay21]

I wonder if these guys were involved in this:

 

http://www.reuters.com/article/2013/06/08/us-unipol-berkshire-idUSBRE95705L20130608