Ralph Mucerino tells Global Broker & Underwriter that the firm is not cutting premiums and feels the market rumour mill has gone too far.
AIU’s Chief Operating Officer for International Business has said the market rumours which have been circulated by its rivals over it pricing strategy were wrong and were some of the most “mean spirited” he had ever witnessed in his time in the industry.
Ralph Mucerino who is also the company’s president of Global Marine & Energy said AIU, the non life underwriting operation of the AIG group, was not cutting rates to win new business and was committed to profitable underwriting and risk assessment.
He said: “Profitable underwriting is in the DNA of every AIU underwriter and that has not changed. We will examine the risk, its loss record and will arrive at the right price for the risk. We are not looking to gain greater market share, we are looking to write new business but certainly not seeking market share. We are focused on profitable underwriting.”
Mr Mucerino added: “We are aware of the misinformed speculation that is being put around the market and I have to say I have never seen competitors making such specific or mean spirited statements in all my time within the industry.”
He added AIU had not received any of the federal bail out cash which has been used to bolster AIG as a group and that the regulators across the world remain satisfied with the way in which it is operating and the company’s approach.
“We have been working hard to separate AIU from the rest of the group as we are a well capitalised and profitable operation,” he said. “We have brought the operations together under the AIU banner and we are looking to further rebranding in the future and the announcement in April of the Special Purpose Vehicle was a further indication of the direction AIU wanted to take.”
“We are keen to continue to take the business forward and we are very positive about the future. As for the talk about our rating actions I will leave the market to make its own mind up when we announce out first quarter results,” he added
