AIG Names Two Executives At Global Real Estate Unit

   DOW JONES NEWSWIRES 
 

American International Group Inc. (AIG) named two executives, including a turnaround specialist, for its international real-estate investment organization.

The appointments Friday come just ahead of the ascension of Robert Benmosche, the former chairman and chief executive of MetLife Inc. (MET), who will step in as AIG's chief executive Monday. Harvey Golub, formerly CEO of American Express Co. (AXP), takes over as nonexecutive chairman. Edward Liddy, who took both roles in September after AIG's first federal bailout, will step down.

Overall, AIG's just-reported second-quarter results showed the company had stanched the flow of write-downs and investment losses as it turned in its first profit in seven quarters, although its core insurance operations are still struggling to rebuild from last year's collapse.

AIG named Robert G. Gifford president and CEO of AIG Global Real Estate to succeed Jeffrey Hurd, who had been in the positions on an interim basis. Gifford worked 22 years at AEW Capital Management LP, a Boston real-estate management adviser.

"Rob Gifford brings to AIG a deep and versatile background in real-estate investment, development and portfolio management," said Paula Rosput Reynolds, AIG vice chairman and chief restructuring officer. "He also has an outstanding reputation for earning the confidence of investors, including during challenging real-estate market conditions."

Hurd will return to his roles as head of asset-management restructuring and chief administrative officer.

AIG also named William J. Glasgow chief restructuring officer of the real-estate unit, which has $24.3 billion of assets under management. Glasgow had been chief operating officer of Scanlan Kemper Bard Cos., a real-estate private equity firm.

"Will Glasgow's management and restructuring experience spans not only real estate, but also financial services and other industries," Reynolds said. "His background is especially valuable as AIG seeks the best possible outcomes for its real-estate assets."

AIG shares were recently up $4.40, or 19.5%, at $27. The shares have doubled in value this week but remain off 14% for the year.

-By Jay Miller, Dow Jones Newswires; 212-416-2355; [e-mail]