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Member, Beacon International Group, Ltd.
(Reuters)—Shares in American International Group Inc. soared 30% on Thursday after new Chief Executive Officer Robert Benmosche told Reuters he did not favor a fire sale of the bailed-out insurer's assets and that in a year people will say AIG is performing well.
"I think we will be clear as to what the vision is, what the reality of that vision is. We'll have a better sense of what our strategic companies will be worth, and what the marketplace will be worth, and people will say, wow, AIG is performing well," he said in an exclusive interview with Reuters.
He said he does not favor a quick sale of company assets at any price. "Just selling this company and getting whatever you can get for it and hope that it covers whatever debts you have, it's not for me. I don't think that's the way to go," he said.
AIG's shares rose more than 30% to $49.20 by midday in New York.
Last September, AIG was on the verge of collapse from massive losses on derivatives linked to the subprime mortgage crisis until the U.S. government stepped in. The new CEO is charged with leading AIG in repaying billions in U.S. bailout loans while keeping the insurance company stable.