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Aig chief sees retirement age as high as 80 after crisis by ferujkll sdff
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Aig chief sees retirement age as high as 80 after crisis |
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Business,Business News,Business Opportunities
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Jun 4, 2012 6:00 AM GMT+0800 American International Group Inc. (AIG) Chief Executive OfficerRobert Benmosche said Europe s debt crisis shows governmentsworldwide must accept that people will have to work more years aslife expectancies increase. Retirement ages will have to move to 70, 80 years old, Benmosche, who turned 68 last week, said during a weekend interviewat his seaside villa in Dubrovnik, Croatia. That would makepensions, medical services more affordable. They will keep peopleworking longer and will take that burden off of the youth.
The crisis, now in its third year, threatens to destroy Europe s17-nation currency union as Greece contemplates exiting the euroand Spain sees its bond yields rise and banking industry falter.German Chancellor Angela Merkel hardened her opposition to jointdebt sharing in the euro region as U.S. President Barack Obamasingled out Europe s leaders for not doing enough to arrest thecrisis. Greece abandoning the euro could be a disaster for the country andEurope must work to keep that from happening, said Benmosche, whosecompany was the world s biggest insurer before it took a U.S.bailout. People in Greece have to see there is no easy way out of this and the government must get them to work longer, he said in theJune 2 interview on the Adriatic coast.
If not, and if they go totheir own currency, I think they will see huge inflation and itwill be devastating for people on fixed incomes. Life Expectancy Greece, where the average life expectancy is 81.3 years, has aneffective retirement age of 59.6, among the lowest in Europe,according to data compiled by Bloomberg. French President FrancoisHollande, the Socialist who was sworn in last month, has pledged tocut the retirement age to 60 from 62 while increasing corporate andbank taxes and introducing a 75 percent levy on earnings of morethan 1 million euros ($1.2 million). Peter Hancock, CEO of AIG s Chartis property-casualty unit, saidlast week the insurer has assigned staff from Argentina to advisetheir counterparts in Athens as the company prepares for a possibleGreek exit from the euro, with the common currency at its lowestagainst the U.S. dollar since June 2010.
Argentina defaulted on arecord $95 billion of debt in 2001 and later abandoned adecade-long 1-to-1 peso peg to the greenback. We have gone through the crisis in Argentina and other countriesover time, so we have experience there, Benmosche said. Taxpayer Rescue Benmosche has sold non-U.S. life insurers, a consumer lender andother businesses to pay back its taxpayer rescue, which swelled to$182.3 billion as the U.S. extended more credit and lowered theinterest charged.
The Treasury Department has cut its stake to 61percent from 92 percent through three share sales totaling about$17.6 billion. In the most recent two, AIG bought back a total of$5 billion in stock. AIG still seeks to divest its plane-leasing unit and sell itsremaining stake in Hong Kong-based insurer AIA Group Ltd. The overhang from the government s ownership interest in AIG isin the process of going away, Paul Newsome, an analyst at SandlerO Neill & Partners LP, wrote in a May 30 research note. AIGshould have sufficient enough capital to facilitate the TreasuryDepartment s exit.
Treasury raised $5.8 billion in the first offering in 2011, sellingfor $29 a share. At the same time, AIG sold 100 million shares for$2.9 billion to demonstrate access to the capital markets andsatisfy a condition of its bailout. The insurer bought half of the$6 billion in stock the department divested at $29 apiece in Marchand $2 billion of a $5.75 billion offering that went for $30.50 ashare in May. The government needs to average $28.72 to break evenon its investment.
Lack Confidence AIG slid 6.8 percent on June 1 to close the week at $27.21 afterU.S. employers created the fewest jobs in a year and the nation sjobless rate rose to 8.2 percent. Reports also showed manufacturinggrew less than estimated in the U.S. and China, and contracted fora 10th month in the euro region.
Benmosche said people and businesses in the U.S. lack confidenceand are hesitant to invest as financial regulation and tax policiesremain unsettled. I am optimistic that we ll continue to grow, and if we get pastthis period of uncertainty and gain confidence again in the U.S.economic system, that will help lead the world out of the situationwe are in today. I am an expert from Digital Gear & Camera Bags, usually analyzes all kind of industries situation, such as industrial wiping rags , wool melton fabric.
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