Insurance Weekly Notes: AIG, Prudential

The week ended November 28 was relatively uneventful for the insurance space. Below we give a brief roundup for AIG (NYSE:AIG) and Prudential (NYSE:PRU), looking at the AIG bailout lawsuit as well as Prudential’s key appointment towards improving customer experience for its U.S. businesses.

AIG Bailout Lawsuit Not Over

The hearing at the U.S. Court of Federal Claims focusing on the bailout AIG received from the Federal Reserve Bank of New York during the financial crisis has almost reached an end. With testimonies of high profile witnesses – including former Fed Chairman Ben Bernanke and former Treasury Secretary and Chairman of the New York Fed Timothy Geithner – concluding next week, both sides will be required to file legal briefings with the court. Judgment is not likely to be delivered until next year. ^[1] The lawsuit was filed by Starr International, a firm that controlled the largest stake in AIG during the crisis and is headed by former head of AIG Maurice R. “Hank” Greenberg.

Trading at around $55, AIG’s stock was flat during the week. We have a price estimate of $52 for AIG’s stock, valuing the company at $75 billion.

See our complete analysis of AIG here

Prudential Appoints Executive To Customer Service

Prudential appointed Naveen Agarwal as its Chief Customer Officer, a newly created position. The post was established as a part of the company’s strategy to enhance its customer experience in the U.S. market. ^[2] With the appointment, Prudential is looking to capitalize on Mr. Agarwal’s experience in sales, marketing and technology to broaden customer engagement and relationships as well as design and execute the company’s digital strategy in the U.S.

See our full analysis of Prudential here

1. AIG Case May Turn on Nonstar Witnesses, The Wall Street Journal [↩]
2. Prudential Financial names Naveen Agarwal chief customer officer, Prudential Press Release [↩]