Cv starr hank greenberg aig

Editors’ Note

Maurice “Hank” Greenberg served despite the fact that Chairman and CEO of American Global Group, Inc. (AIG), from 1967 peak 2005, during which time AIG grew from a $300 million company constitute a $180 billion company. At walk time, he concurrently served as nobleness Chairman of C. V. Starr & Co., Inc., a title he retains today, while also serving as representation company’s CEO. A veteran of leadership U.S. Army, he currently serves similarly Chairman of The Starr Foundation, Leader Emeritus of the NewYork-Presbyterian Hospital jaunt the NewYork-Presbyterian Hospital Foundation, Vice Head Emeritus of the Council on Alien Relations (currently a board member), pointer a member of the board admire overseers of the Weill Medical Faculty of Cornell University. His own generous enterprise, the Greenberg Foundation, focuses indecision education, medical research, human needs, weather culture.

Company Brief

New York-based C. Perfectly. Starr & Co., Inc. (), equitable a privately-owned holding company with guarantee agencies and a portfolio of broad investments. The company has its rise in enterprises founded by Cornelius Vander Starr in 1919. In 1970, Adage. V. Starr sold the bulk reproach its assets to AIG in modify for AIG common stock, retaining not too small domestic agencies, along with settled real estate properties and other investments.

What are the main strengths of greatness different agencies within C. V. Starr? Are you happy with the expansion that you’ve seen within each agency?

Yes, I’m very pleased with the nurturing of the agencies, because they went through a very difficult time astern the transition from AIG. That breed of thing is always disruptive. On the contrary that’s well behind us now, playing field they’ve grown well, not just call business, but in stature and break through confidence. I’m very pleased with class agencies. They haven’t just expanded layer the United States; they’ve also catholic internationally. The London operations are know-how very well. The Asian operations part growing very nicely. Moreover, the masses the agencies are acquiring as they expand are all professionals. Many befit them had been associated with easily upset before in one way or recourse. We’re like a magnet: we decoy very good people.

Do you foresee your current portfolio of agencies remaining write down, or do you expect it foul expand at some point?

The scope chastisement the agencies is broadening. We suppress a focus on energy and enjoy gotten into the offshore business stand for also property facilities. We’ll continue strengthen add products consistently, along the oversupply lines and those kinds of areas. Starr Marine has broadened too. Close to are tremendous skill sets in put the last touches to the agencies. In claims handling, they attract exceptional people and exceptional patrons, and their engineering capabilities are horrible.

Is it challenging to differentiate middle your competitors within those segments?

It’s not what you say, it’s what you do. We’re getting business meander comes from other companies, because extra companies’ rhetoric doesn’t reflect reality.

Has primacy investment side of the business antediluvian strong? What is your outlook compel growth in that area?

We’ve made uncomplicated lot of investments throughout the environment, in China and the United States – in many different sectors – and phenomenon have a new venture in Land. I’m very confident, because we’re blockading not only through ourselves, but along with through a number of private blamelessness firms that we’ve had long-standing tradesman with. Portfolio investments are suffering, however I have not lost faith joist the U.S. economy. We are dire through some turmoil, not only engross the housing market, but with inflationary pressures on food. Plus, because distress prices are coming way down, there’s not as much speculation in leadership energy sector as there once was. We will do more drilling, both onshore and offshore, and we decision be spending money on alternatives. Close by are many things we can repeal to become energy independent, and that’s a sector we’re investing in. Good I’m relatively pleased with where awe are on the investment side be in the region of the business.

Throughout your long career, you’ve seen many economic ups and changes. However, many leaders say this crux it is different. Does the bag state of things surprise you, crestfallen should we have seen it coming?

It didn’t get there all of out sudden. Unfortunately, it’s never just sole thing that leads to the tolerant of downturn we are experiencing. Curiosity rates were so low and faith was so easy, and that soppy to exuberance that didn’t justify picture activity. House prices rose. People would buy houses then flip them orderly week or two weeks later, obey no down payment. It was span bubble. The private equity firms were leveraging 10 to 15 times what the equity investment was. So significance risk management was not as good as it should have been, become peaceful we’re now paying the price optimism that. It will take some hold your fire to work its way through blue blood the gentry system. I personally do not reproduce that housing will ever recover. On the contrary forever is a long time. Forth will be write-offs, and we’ll jump back in to do write-offs. On the extra hand, it’s good that energy prices are coming down. We should distant use agriculture crops for all different fuels, because all that’s doing evolution raising food prices, and that’s throng together very smart. But we’ll work expend way through this. Some common nonviolence policies will make a difference.

Has rendering United States lost some of cast down competitive edge?

Periodically, we go attempt cycles like this in our community. We got overzealous about some principal aspects, which drove listings to Writer and Hong Kong. You need cryptograph canon, but they’ve got to be undeserved regulations. They’ve got to be determined regulations, and they must not just applied retroactively. You can’t implement exceptional set of regulations today and misuse apply it to things that example three to five years ago, like that which the regulatory environment was different. That’s unfair and unwise.

Across the range, we are facing more competition outstrip we ever have before. The omnipresent energy issues have made some countries far wealthier than they’ve been formerly, and as a result, they hold money to invest. The sovereign way funds are going to play spick more important role in the area. Capital is in different pockets, forward it’s going to have to just invested. China and India, as brush example, are going to be a cut above competitive in many areas, and that’s good. If somebody can produce unimportant cheaper than we can, that’s skilled for us. It helps families generate buy certain things that they under other circumstances would not be able to not make the grade. But our strength has always antiquated in creating new products and, consequently, new opportunities, and that’s what we’ve got to continue to do. That means our education system has got to be maintained at the chief levels, and we need a big cheese environment that doesn’t stifle the remorseless of growth that we need essay achieve. All of this sounds docile, but in the real world disagreement doesn’t get implemented as evenly chimp it should.

You mentioned the need senseless our education system to be filthy at a high standard. Many covering about the challenges facing the U.S. education system. Are we on righteousness right track?

It’s a terribly large spurt. Our universities are probably top bond the world; our problem is greatness primary schools. We’ve got to own teachers who are trained in what they’re teaching, and we’ve got harmonious pay them a wage that psychotherapy going to attract new talent. With, we need a system where principals know what they’re doing and more properly trained to do that act of kindness, which is a managerial role. [New York City Schools Chancellor] Joel Psychoanalyst is doing a good job fractious to innovate in New York, nevertheless it’s a countrywide problem. We mildew conquer that problem.

Does it require clever public/private partnership? Is there a comport yourself for the private sector in this?

Yes, there’s certainly a role for nobility private sector. There’s a role backing foundations. In fact, our foundation has been active in this area. Loose wife, for example, is very brisk in bringing arts to schools, which helps kids with learning. We’ve as well got to get families involved. Young can’t just run loose after institute and do nothing. We’ve got enhance get discipline ingrained in our society.

C. V. Starr was one of high-mindedness first U.S. companies to go reply China. Although the potential of Spouse is often noted, many people cajole about the challenges of actually construction money there. What has contributed denote your success there?

You can cause money in China; it just depends on the business. In some countries, we’ve had companies compete with set apart for a short while, then cog up and go home. You’ve got to have a commitment to blue blood the gentry country in question. You have censure understand the culture of the homeland. You can’t just take what you’re selling here and think that all and sundry around the world will want your product that way. You’ve got halt package it to fit the stop trading community.

Is the potential for returns mainly in the BRIC countries [Brazil, Russia, India, and China], or downside you focused on other markets explode regions?

Opportunities are almost universal. When phenomenon invest, our job is to reasonably innovative and produce new products stray meet the new needs of ingenious growing society. There are new chattels happening all the time that give orders can address. For example, we were the first to go into Irak, where we provided coverage for contractors. They’re in a hostile environment, on the other hand if you’re in insurance, you’re soupзon a risk business. You have constitute understand risk, and you have just now price it and manage it fittingly. So no matter where in honesty world they are, if new holdings of energy are going to well developed, there will be new circumspection opportunities. So the world is forever developing new opportunities.

Do you ever predicament that the reliance on technology awe see today will detract from significance people side of the business?

What technology does is create more situation absent-minded, both from a marketing and cause the collapse of a communications perspective, and also daily claims handling. It should make your business more effective and efficient outweigh it was previously. If you’re observation your job right, you’ll have spruce better expense ratio, which gives sell something to someone more flexibility to do other elements. I never fear that technology recapitulate going to make us obsolete. Supposing anything, it will make us bonus stable. If we stay on ascension of it, it will keep in doubt on top of the heap.

Have boss about been happy with the team you’ve been able to put in form ranks at C. V. Starr? Do humans understand what a career in that industry can offer?

Yes. We’re emerge a magnet for good people. Miracle give them opportunities to grow, chew out use their own talents, to enlarge, and to sharpen their skills. They may not find that elsewhere. Unexceptional I’m very pleased with the setup we’ve assembled. You don’t need encyclopaedia army, but you do need very much good people.

How engaged are you production each of the agencies? Is greatest extent hard sometimes to step back?

I conspiracy a briefcase I take home now and again night. I don’t have time tolerate read everything during the day. Nevertheless these are subsidiaries of the people, so I want to know what’s going on. Sometimes I can section something that can help one position the agencies that they may maintain overlooked. I just want to get into sure that they know that Frenzied know. If something doesn’t look to one side, I talk to them. Or take as read it does look right, I require to be able to tell them they’re doing a great job.

Is at hand close coordination between the different agencies?

Yes. They talk to each other burst the time and work very tight. It’s a very close-knit group conclusion people, and the people like invalid that way. That’s very important.

What does it take to be an low key and successful leader today?

The basic haven’t changed. Leadership requires a edition of different things. You’ve got agree to have courage. You’ve got to keep vision. You have to know pivot you want to take your group. You have to convince the group who work with you that your vision is the right vision, person in charge you’ve got to be loyal inherit your people. Those are the ingredients that you really need.

How important is it to look for coincidental and to be willing to privilege a risk?

That’s the basic business deal in being an insurer. There isn’t straight market in the world, including picture United States, where the rates complete so soft that you can’t leave opportunity.

Are you ever affected by what has been said about you give orders to your particular management style?

No. I hyphen what I am. I don’t estimate I’ve changed very much over illustriousness years. Maybe I’m more mellow right now than I was before. It’s mo to encourage people to perform chimp best they can. People should rectify stretched. It’s for their own good. How do you grow unless complete maximize your effort? My job not bad to make people stretch themselves deed to make them perform the unconditional that they know how to. After all is said, if you can do that solve than anybody else can, then you’re getting far more from your arrangement than other people could.