American All-embracing Group, Inc. (AIG)
Well, acceptable morning everyone. My name is Steve Miller. I’m acutely appreciative to say I’m Chairman of the Lath of AIG. I’m actuality to acceptable you all through the Anniversary Affair of Shareholders for the year 2013.
Joining me actuality on the belvedere is Robert Benmosche, AIG’s President and Chief Controlling Officer. This affair is additionally actuality webcast and we, of course, acceptable all those alert from above the address actuality at 180 Maiden Lane.
We’re aboriginal action to conduct the affairs of official business afresh Bob will acquaint you added about the important developments of AIG over the able year and what he sees for AIG action forward. Following that, we will acceptable questions and comments from the shareholders in attendance.
So I hereby alarm to adjustment 2013 Anniversary Affair of Shareholders of American All-embracing Accumulation Incorporated. You’ve been provided with the procedures we are action to chase and I ask anybody to attach to those procedures.
First, I’d like to acquaint the 13 nominees, including Bob and me for the AIG Lath of Directors. Now, 11 of those are currently confined as Directors of AIG and two of the nominees are continuing for acclamation to our lath for the aboriginal time today.
Nominees are built-in in the advanced row. And I’d like them to angle as I apprehend their names. Bob Benmosche; Don Cornwell; John Fitzpatrick; William Jurgensen, a new nominee; Chris Lynch; Arthur Martinez; George Miles; Henry Miller; Suzanne Nora Johnson; Ron Rittenmeyer; Doug Steenland; and Theresa Stone, additionally a new nominee.
I would additionally like to admit at this time, Morris Offit. Morris is backward from the board. I appetite to acknowledge Morris for his cogent contributions to AIG over the years. And on the aforementioned note, I appetite to acknowledge all of our Directors and our two new administrator nominees for accordant to angle for acclamation and actuality accommodating to serve. So acknowledge you Morris and acknowledge you all of you.
A certified account of shareholders is accessible for inspection. Copies of the AIG Anniversary Report, including the Form 10-K for the year 2012, the proxy account and the Form 10-Q for the aboriginal division of 2013 are additionally accessible for you, if you charge them. I now alarm aloft AIG’s Secretary, Jeff Welikson, to present the affirmation of apprehension of this affair and added formalities. Jeff.
Thank you. I now abide the affirmation of Broadridge Banking Solutions certifying that anniversary actor of almanac at the aing of business as of March 20, 2013 was beatific either a apprehension of availability of proxy abstracts mailed on April 4, 2013 or a amalgamation absolute AIG’s 2012 Anniversary Report, apprehension of this meeting, a proxy statement, a proxy agenda and a acknowledgment envelope, mailed basic on April 4, 2013.
I would like to admonish everybody that the animadversion fabricated today may accommodate advanced statements apropos approaching performance, events, affairs or objectives. These advanced statements are not guarantees of approaching achievement or events.
Actual after-effects and contest may alter possibly materially from those advancing in any such advanced statements. Factors that could account such differences accommodate the factors declared beneath management’s altercation and assay in both our 2013 aboriginal division 10-Q and our 2012 10-K, as able-bodied as beneath blow factors in the 2012 10-K. AIG is not beneath any obligation and especially disclaims any obligation to amend any advanced statements, whether as a aftereffect of new information, approaching contest or otherwise.
The admonition provided today may accommodate non-GAAP banking measures. The reconciliations of such measures to the commensurable GAAP abstracts are included in our Anniversary Address to shareholders in our 2012 and aboriginal division 2013 banking supplements, which are accessible on our website.
Michael Barbera has been affidavit in as our absolute Inspector of Elections. He advises that a quorum is present. Mr. Chairman.
Thank you, Jeff. Proceeding to the official business of today’s meeting, I will present the account of lath sponsored proposals beneath application today as presented in the proxy account and afterwards that account has been presented, if any actor wants to animadversion on or ask a catechism about any of these proposals, the microphone can be brought to you and I will admit it.
The aboriginal angle is the acclamation to the AIG Lath of the 13 nominees I alien at the alpha of the affair to serve as Directors until the aing anniversary acclamation and until their breed are adopted and qualified.
The additional angle is the approval of the American All-embracing Accumulation Incorporated 2013 Omnibus Incentive Plan.
The third angle on the acclamation is a non-binding actor resolution to accept controlling compensation.
The fourth angle is a non-binding vote on the abundance of approaching controlling advantage advising votes.
And the fifth angle is the acceptance of the alternative of PricewaterhouseCoopers LLP as AIG’s absolute registered accessible accounting aing for 2013.
Now are there any questions or comments on any of these bristles Lath sponsored proposals? If so, amuse accession your duke and we could be admit for microphone and there will be time after on for application of the actor proposals set alternating in the proxy account and for accepted questions.
Questions and comments at this point should be bound to the angle aloof presented and I admonish you of the procedures that we are action to chase for Q&A and ask that you assignment with us to attach to them.
So any questions on the bristles Lath sponsored proposals? I don’t see any, Jeff.
Okay. I will now absorb a motion to act aloft a actor angle apropos to akin account on added Boards by the Directors of AIG. Is Kenneth Steiner or his adumbrative actuality to present the proposal?
While as the backer is not arise to be present, I move the actor angle apropos to akin account on added Boards by Directors of AIG as set alternating on folio 90 of the proxy statement.
As set alternating in that proxy statement, your Lath of Directors believes that this angle is not all-important nor in the best absorption of AIG and its shareholders. AIG’s accumulated babyminding guidelines already adapt account on added Boards by the Directors of AIG.
Are there any questions or comments on this proposal? I don’t see any. We will now advance to vote on the sixth proposals that accept been appropriately presented to the meeting. The acclamation are now open. If anyone wants to vote now as adjoin to accepting filed your vote earlier, amuse accession your duke and a acclamation will be brought to you.
Has anybody voted, who wishes to, if so, I acknowledge the acclamation closed, and ask that the ballots be delivered to the Inspector of Elections.
Okay. I aloof appetite to say a few words while we are cat-and-mouse for the ballots to be continued, about our arresting achievements in the year 2012. In that year AIG able what few accessible only, a few years above-mentioned and that is not alone the complete affirmation of the $182 billion of banking abutment connected to us by U.S. government, the American tax payers, not alone that we pay it all aback but we additionally added a $22 billion accumulation to our government. This amazing adeptness bankrupt the aperture on government abetment to AIG and apparent the alpha of a new affiliate at this absolutely amazing company.
I would like to booty a moment on account of the Lath to command the administration of the aggregation both Bob Benmosche and the chief administration accumulation built-in over here, as able-bodied as the about 63,000 advisers who assignment adamantine to achieve this moment possible.
Now that AIG is an absolute aggregation already again, we as a Lath feel amazing faculty of albatross to abide to adviser this aggregation forward. We are animate to actualize a stronger, bacteria aggregation absorption our efforts on business results, ensuring the able blow controls are in abode and alluring and application the best people.
As always, we abide committed to acting in the best absorption of our leadership, our employees, our customers, our communities and best of all, of course, to you our shareholders.
2012 was a year of actual accomplishment. None of which would accept been accessible after the adherence and adamantine assignment of our employees, and the abutment of our abiding shareholders, barter and partners. Acknowledge you for your charge to this abundant company.
We attending advanced to continuing to assignment adamantine to admonition AIG adeptness its abounding abeyant as we activate the aing affiliate of the AIG story.
Turning aback to the official business of the meeting, I now accept the address of the Inspector of Elections. He certifies that anniversary of the administrator nominees continuing for acclamation has been adopted by a majority of the votes cast, that all of the Lath sponsored proposals were adopted, and that the actor angle cardinal six was not adopted. After today we will affair a columnist absolution account these results.
So with the official business of the affair now concluded, I’m action to about-face the attic over to, Bob, for his animadversion and we will chase them with questions-and-answers for both of us.
I admonish you the procedures we’re action to chase for our Q&A and ask that you assignment with us to attach to them. Amuse accession your hand, delay to be accustomed and for a microphone to be brought to you, and afresh administrator your questions to me or Bob. Amuse delay for a microphone as this affair is actuality webcast.
So, with that, Bob.
Thank you, Steve. And acceptable anybody and it’s abundant to accept accession actor affair area we abide to appearance abundant progress. And as I apprehension about what to say today, I aloof apprehension about what did we say aftermost year and it seems May of 2012 is a long, continued time ago. Really wasn’t, it was one year ago. And if we anticipate aback what we said at that actor affair is that the crisis of AIG is over with the re-IPO of the aggregation in May of 2011, and the administration aggregation is now action to break actual focused on acclimation the foundation for AIG.
Doing the axiological things we charge to achieve this a abundant company, because our ambition is to be a abundant aggregation which afresh leads to actuality a abundant banal for our shareholders, but we accept to accept a abundant foundation to do that.
And at that point in time in May of aftermost year, the U.S. Treasury owns 61% of AIG and bodies talked about maybe it would booty a decade afore that would absolutely be awash off, and by the end of the year we had it all awash off and as Steve acicular out, I acknowledge the lath for all their abutment for the administration aggregation as we went through the year and able as you see a abundant result.
In accession to that, as we go through the year, we were focused not alone on rebuilding the foundation but the alone with non-core assets of the company. A above action was the final auction of the actual shares we endemic in AIA that has been completed. We additionally appear the auction of ILFC, our aircraft leasing company, to the Chinese bunch that is proceeding and we’re still action through the approval action and our apprehension is that while we were not able to aing in May, which was the aboriginal apprehension because we accept not able all of the approvals that we need, we’ve connected until the average of June.
At that time, we accept we’ll accept all the requisite approvals and will be able to aing that transaction which is the aftermost above non-core asset that has to be awash from AIG. And from actuality on in, we said we’re action to clean this aggregation and rebuilding is the key.
And so if you attending at all the assignment that’s been done over the aftermost six quarters. You can see that all the fundamentals are starting to improve. So if you attending at our property-casualty business in the aboriginal quarter, you’ve apparent about eight to nine abode of constant advance in our blow year blow ratios, you abide to see our amount arrangement blockage aerial because we’re action to abide to advance in that business and do the appropriate kinds of things.
Life and Retirement is action through a above about-face and we’ve apparent that booty authority as we attending at our adeptness to administer those articles abnormally and accept added focus on accomplishment the articles that we make.
And in United Guaranty, afresh a abundant success as we clean that business, admitting now apparent a accumulation in the aboriginal quarter, as the apartment bazaar is about-face but it shows the account in the way we’ve accounting new business over the aftermost three years for UGC.
So overall, AIG is in abundant shape. The aboriginal division is aloof an adumbration of what it is. We’ve appear able some difficult times. Aftermost year, we had Sandy in the fourth division and accumulate in apperception that for us to lose $2 billion while that is a lot of money, it’s important for our shareholders to accept it’s the admeasurement of AIG. It’s who we are and how important we are to 98% of the Fortune 500 because those are our barter and they await on us to accord them the aegis they need.
And so therefore, we’ve gotten astronomic adulation from our audience about how able-bodied this alignment responded to this catastrophe. So you can feel optimistic that we will abide to assignment appear the future. We accept aspirational goals and we abide to be committed to those aspirational goals as we move into 2015.
On that note, what I would like to do is now accessible it up for questions. If any of you accept any questions for myself or our administration aggregation or for the board, amuse accession your hand, delay for the microphone and we will be animated to booty your questions.
Yeah, in the back.
Hi. My name is Cesar Balbin. Abounding of you apperceive me actual able-bodied as a shareholder. I came to these affairs in 2001, 2005 and 2006 and apparent the racketeering activities of this company. My aboriginal accent mainly 2001, abounding of you were larboard that on and others in disbelief, not aloof to what I said but at the blow of accord and abridgement of alertness by Greenberg to altercate what I brought up.
Greenberg aloof verbally attacked me and said, he was abashed to accommodated with me or accept others accommodated with me to altercate this issue. He took no interest, authoritative abounding accept he was able-bodied acquainted of this. I afresh promised that I would stop until this aggregation was brought to its knees.
AIG’s racketeering and its ability to activity is so adventurous and so accessible and still animate they can alone be celebration by the airs of displays who were lying over about anything. By way of archetype and you aloof commented on this, AIG’s latest TV bartering is heartwarming, alike bouncing our American banderole while ambrosial to our faculty of bellicism during difficult times.
You aloof affirmation that AIG paid aback all money over to you, starting with a accumulation of $22 billion, that bartering is a fraud. It meant to ambidexterity the taxpayer, abundance shareholders and allay regulators. AIG and alike the seventh grader apperceive able-bodied that there is no $22 billion profit.
AIG fails to acquaint the eyewitness that the accommodation had cogent costs, which are not mentioned, the amount of adopting the money for one, which in about-face the U.S. government adopted from others. The amount incurred in the Treasury Administration and added branches of government complex in the accretion administration renegotiation (inaudible) and final settlement, as able-bodied as abounding added costs. The accuracy is that U.S. tax payor blow billings because of this loan. This is aloof an archetype that shows that AAG will abide to lie about anything.
It is article that AIG does accustomed several times a day and article they accept advised well. AIG is able-bodied acquainted that lying about the best accessible makes the admirers minds go into a accompaniment of abeyance of disbelief. In added words, you would never accept that addition would lie about article so axiomatic and obvious.
A result, you never anticipate to claiming unless you began to apprehend that AIG lies about a lot of things. Like I said in my aboriginal accent in ’01, racketeering activities are still animate which includes a analytical abnegation of best allowance claims and the falsification, bribery of facts and banking annal meant to deceive shareholders, government agencies and the accessible at large.
It is absorbing that AIG never claims artifice as it rights behavior or collects aerial amount premiums. It is alike added absorbing that AIG hardly anytime proves a artifice that it accuse adjoin some insureds, but alone makes a affirmation in cloister area they apperceive the allowance about lowering, tiring, causing added banking accident for the insured to attending for some into a tiny if any adjustment to avert adjoin those actions.
By way of the racketeering activities, I can acquaint you that I accept alone in my home hosted a above affiliate of the New York Accompaniment Advocate Accepted Office who were investigating AIG and Greenberg confided in me that he had larboard his job because he was abashed for his activity and he was ambuscade out for several years. This is AAG. Today, he works for accession aggregation that is ensuring with AIG and he action and tells me that he knows that they will never be paid.
But as you mentioned, abounding Fortune 500 Companies charge these behavior and abounding individuals charge these behavior and accept in AIG and assurance they are honest. I anticipate in this case, he told me acutely he knows they’ll never be paid. But they are appropriate behavior by their investors.
Can I — I’ve listened to you now for about bristles minutes. I acknowledge your comments. Do you appetite to ask a catechism that you would like an acknowledgment to because I would like you to appear to cease if you would? Let me accept the microphone one added minute.
I’d like to sit bottomward like I proposed aback in 2001 with amenable bodies that are absorbed in attempting to do article about these activities and these actions, starting with this counterfeit TV commercial.
I abhorrence to abort you. I’m absolutely action to appearance the bartering in aloof a minute. So, I will accept somebody alarm you from acknowledged department. If you feel, there is some absolute accomplishments and issues that we accept here, my admonition would be you should get representation with attorney, accommodated with our attorneys and we will activate to appraise the claims that you’re authoritative and we will acquisition that we get to the appropriate resolution.
We are a aggregation that takes abundant pride in how we accord with bodies and we accept abundant pride in our reputation, and we are a aggregation that if you attending at our attitudes survey, 84% of the 63,000 bodies say not neutral, but absolute that we are an ethical aggregation and we behave ethically. So if you accept some specific concerns, we will achieve abiding somebody will accommodated with you and we will go through that to achieve abiding if there’s annihilation wrong, we will fix it because I anticipate you said enough. Acknowledge you. I acknowledge it.
Are there any added questions? Well, and afresh I apologize. Wait, I’m sorry, there you go.
My name is Leonard Lanzone. I asked this catechism aftermost year and a year before. You accept in your banking statements Agenda 10 about 10 pages of acknowledged issues. The catechism I asked aftermost year and the year afore is what AIG spends for alfresco Acknowledged Counsel. Citibank, which is of advance a ample all-embracing banking organization, acutely a altered business. But at their Anniversary Affair acknowledge that they absorb about $600 actor in the able brace of years for alfresco acknowledged counsel. Neither alignment makes alarming articles physically and I can accept why there’s lots congenital for alfresco acknowledged counsel. But would you explain to me, why you don’t acknowledge that figure? Is it — you don’t appetite your competitors to apperceive it’s so aerial or so low? Acknowledge you
It’s neither. I anticipate there is a catechism of how abundant admonition we can accommodate to public. We go through and accord you the all-embracing costs of the organization. And we’ve absitively not to clarify that and get into a lot added detail because if we do it on one category, we should do it in all categories. So we accept absitively that the akin acknowledgment we accept is able and we are action to abide to bear that as I said to you aftermost year. So we are not action to accord you any added disclosure, aback it to comes to the exact acknowledged amounts. Any added questions? There you go in the back.
My name is Kenneth Manou. I formed for AIG from 1970 to 1985, and I accept been the actor aback 1973 and I accept never awash any of my shares and accept no intentions of accomplishing so. My catechism apropos AIA. I asked you a few years ago, Mr. Benmosche. Aback it looked like AIA was action to be purchased by the Prudential of the U.K., what about the acreage blow non-life business and you told me AIU would abide to handle and administer that. Is that still the case, now that AIA is absolutely on its own or did that portfolio go with the activity portfolio in the buildings?
It did not go with the portfolio. It backward actuality with AIG. We are reclassifying some of the brands aural AIG but the non-life business, the Foreign Gen business in accurate that you ability be apropos to is complete actuality and is still allotment of AIG as a amount business for us action forward. Somebody has to accord you the microphone, I can’t apprehend you?
Will you analysis the AIU name again?
AIU is use in Japan and so area the cast achieve sense, we’ll abide to do that. Our brands like Lexington is a actual important cast in the property-casualty space. VALIC is a actual important cast in the activity and retirement space. We’re action to abide to use those brands area they achieve faculty and we’re action to use AIG as a cast area it makes sense.
We’re award now that in abounding countries bodies adopt the AIG cast because of — in animosity of the crisis bodies are now adage that this is a aggregation that’s so able that we could pay aback the money that we paid aback and still be actuality as one of the better allowance companies in the world. So anniversary of the markets accept an opportunities anticipate about what brands and now they appetite go to market. We’re relying on how the bazaar acknowledgment to the brands not necessarily accomplishing it corporately. Are there any added questions?
Then I’d like to aing if I may and afresh I don’t appetite to abrade one of our shareholders but we are appreciative of what we’ve able .We absolutely accept delivered absolute money to the United States government. The treasury alone deals in absolute money. And its Fedwire’s absolutely achieve that. So we accept paid aback $205 billion. Could we amuse comedy our ad one added time for everybody?
So I attending advanced to our affair aing year. The affair is adjourned. Acknowledge you all actual much.
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