Willumstad, who replaced Martin Sullivan as CEO yesterday after record losses related to subprime loans, said he plans to examine all of AIG's operations, which include offices in more than 100 countries and more than $45 billion of hard-to-value assets. AIG fell 17 cents to $34.01 at 4:02 p.m. in New York Stock Exchange composite trading.
"I'll be analyzing our overall strategy and portfolio of businesses, the performance in operations of each business, their competitive advantages,'' Willumstad, 62, said in a conference call with analysts. "Nothing is off the table.''
Willumstad, who said he was encouraged after speaking with Sullivan's predecessor Maurice "Hank'' Greenberg yesterday, will need to assure regulators, investors and AIG's 116,000 employees that he has a firm grip on the New York-based company. Sullivan, 53, was ousted after AIG lost 41 percent of market value this year following $13 billion of losses over two quarters.
Willumstad promised to have a turnaround plan in place by September and said recruiting a chief financial officer was a priority after CFO Steven Bensinger was named vice chairman in May. The company's performance has been "unacceptable,'' said Willumstad, who joined AIG's board in 2006 after serving as a Citigroup Inc. executive and became AIG chairman later that year.