AIG to name ex-Prudential head to run AIA: report

19th July 2010, Comments 0 comments

US insurer AIG is expected to announce Monday it is replacing the head of its Asian unit AIA, just months before its planned Hong Kong stock market listing, the Financial Times reported.

Mark Tucker, a former head of British insurer Prudential, is to take over from Mark Wilson, who has been chief executive of AIA since 2006, said the paper, citing people close to the situation.

It comes after a revolt from Prudential shareholders led to the collapse of the insurer's 35.5-billion-dollar (27.5-billion-euro) monster takeover bid for AIA, which Wilson had opposed.

AIG executives were angered by reports which emerged at a crucial stage of negotiations that Wilson was threatening to step down if Prudential succeeded in buying AIA, said he FT.

The failure of the mega-deal forced AIG, which is seeking to repay billions of dollars in government bailouts that it was given during the economic crisis, to look again at a Hong Kong listing of AIA to raise fresh funds.

The initial public offering is planned for October or November, said the FT.

Moves to replace Wilson mark a boardroom victory for AIG's chief executive, Bob Benmosche, who is fighting to bring to an end internal turmoil that has rocked the US insurer in recent months, added the paper.

AIG declined to comment but people close to the situation said Wilson would stay at AIA until the end of the year, according to the FT.

Tucker, the former chief executive of Prudential, left the company last year.

© 2010 AFP

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