American International Group president and CEO Robert Benmosche said he will focus on improving the company's balance sheet and rewarding shareholders after the company reported strong earnings, although the company's property and casualty business' combined ratio remained over 100.
Benmosche also used the occasion of an appearance on CNBC last night to say that the U.S. financial system is “safer than we've ever imagined,” and he praised retiring Federal Reserve Board Chairman Ben Bernanke for doing “an outstanding job of taking us through this crisis, and if you look at this trust test that banks are dealing with, the de-leveraging that's happened.”
AIG took a $265 million severance charge against fourth-quarter earnings — the cost of cutting 3% of its workforce as part of a consolidation plan and a strategy to reduce the layers of management. Most of the cuts will be in property and casualty operations.
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