American International Group Inc (AIG), the insurer bailed out by the US government, named Mark Tucker as CEO of AIA Group Ltd as it pushes ahead with plans for a Hong Kong initial public offering (IPO) of its Asian life unit.
Tucker, a former Asia and group chief executive of Prudential Plc, was also named executive chairman, AIG said in an e-mailed statement. Mark Wilson, AIA’s current CEO, will stay until the end of this year to ensure a smooth transition before leaving to “pursue other opportunities,” it added.
AIA was the subject of a US$35.5 billion takeover bid from Prudential, Tucker’s former employer, this year. AIG’s board rejected a revised lower offer from Prudential after the UK insurer struggled to win over its investors at the previously agreed price. Harvey Golub, AIA’s former chairman, stepped down last week after falling out with AIG CEO Robert Benmosche for blocking the sale to Prudential.
“After reviewing various options to monetize AIA’s substantial value, we have concluded that an IPO is our best option,” Benmosche said in today’s statement.
“Mark Tucker has the public company experience, track record, relationships, judgment and leadership qualities that will help us accomplish our ambitious goals of not just taking a company of AIA’s size and scope public, but building on this great platform for the long term to create Asia’s pre-eminent, publicly traded insurance company,” he added.
Tucker stepped down as group CEO of Prudential in September last year after four years at the helm of the UK’s biggest insurer. During his tenure, Tucker pulled out of a separate bid to buy AIA, continued to grow sales in the company’s Asian unit and raised the share price 35 percent.
Before taking up the top job in May 2005, Tucker spent two years as finance director at HBOS Plc, formerly the UK’s biggest mortgage lender. Previously, he spent 18 years at Prudential, a decade of which was as head of its Asian division. When he announced his departure from the insurer in March of last year, the Briton said he had “one more big job in me.”
Benmosche needs to divest the Asia business to help repay US$182.3 billion of government rescue money. Earlier this year, he and Wilson disagreed over the proposed sale of AIA to Prudential, with Wilson preferring an IPO, a person familiar with the matter said.
AIG had planned an IPO of AIA earlier this year until Benmosche struck a deal in March to sell the unit to Prudential. Wilson, who has led AIA since May last year, told friends he would step down if the Prudential transaction was completed because of doubts the integration would be successful, the Financial Times reported May 25, citing an unidentified person.
The deal collapsed after Prudential investors balked at the price and AIG directors including Golub rejected a reduced bid that Benmosche had endorsed, a person familiar with the matter said at the time.
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