Moody's
- Also, you had a lot of different interests in Executive Life.
- You had joint service and Goldman Sachs had bought a lot of the muni-GICs at 10¢ on a dollar.
- It was looking for the big pop.
- Whether it was 68¢ or 50¢, it wanted cash back quickly; it didn't matter. It is going to make a ton of money.
-- Keven Maloney, Vice President and Senior Analyst of Moody's Investors Service
1999 - SOA - Insurance Company Failures of the Early 1990s-Have We Learned Anything?, Society of Actuaries - 25p
- Regarding Executive Life, it was obvious that the sale of assets lost value for the policyholders.
- I think I remember reading that it was about $1.5 billion that was given up from the sale of assets quite quickly.
- Garamendi was the Insurance Commissioner for the state of California; he was a novice, and he didn't really understand the insurance industry. He had worked for a bank. I met him once or twice.
- He just had a different outlook on what was going on than somebody who was inside the insurance industry.
- He also was a political animal, so I think he gave up a lot of value to policyholders by selling out so quickly, and he sold to Leon Black. He was the one who created a lot of stuff in the first place. He knew what the value of it was. Why would you sell it? It's like selling to the shark. You're going to get bitten. I think it was mishandled.
-- Keven Maloney, Vice President and Senior Analyst of Moody's Investors Service
1999 - SOA - Insurance Company Failures of the Early 1990s-Have We Learned Anything?, Society of Actuaries - 25p
- 2021 0715 - Rating Action: [link]
- Moody’s downgrades AIG’s senior debt rating to Baa2 (stable) on announcement of partial sale of Life and Retirement business
- Life and Retirement insurance financial strength ratings affirmed at A2, outlook to negative
