AIG - Prudential deal: The man behind it
02 Mar 2010
American International Group Inc sale of its Asian business to Prudential PLC had been in the works for over a year, but the deal announced today was well worth the wait, say commentators (See: AIG sells Asian assets to Prudential for $35.5 billion)
The $35.5 billion deal for American International Assurance Ltd, or AIA, as the unit is known, is largest insurance takeover on record, according to Thomson Reuters and is roughly twice the price Prudential and other firms were willing to pay for AIA during the worst phase of the financial crisis when the business had been put on the block in the wake of the financial downturn.
The architect of the deal, Tidjane Thiam is a French-speaking former Ivory Coast government minister, who was a surprise choice for the top job at Britain's largest insurer. Thiam has however made his mark at Prudential, putting together a transformational deal after just five months at the helm.
Thiam, who was at rival Aviva joined Prudential in 2007 to take over as chief financial officer and has been the driving force behind a $35.5 billion deal to buy the Asian assets of bailed-out US giant American International Group Inc turning the UK group into the largest foreign-owned insurer in Asia.
The deal was initially attempted a year ago under former chief executive and Asia veteran Mark Tucker, but could not go through as prices were too steep at the time for a market in the throes of the financial crisis.
It then fell on Thiam 47, to clinch the deal less than a year into his appointment as chief executive. Thiam was appointed CEO a year ago but did took up the job only in October.
