Business Insurance Analyse

“Let me be clear: I and the board remain totally committed to leading AIG through its challenges and to continuing to fight on your behalf,” Mr. Benmosche told employees.

According to the newspaper report, Mr. Benmosche had told AIG directors he was “done” with the job he took in August, but agreed to think it over when they reacted with shock. The memorandum sent Wednesday was intended to address employee “concerns” about the speculation, AIG said.

AIG is in the process of trying to sell assets, streamline its operations and improve profitability in an effort to repay the government after it received an aid package of about $180 billion from the government last year in exchange for an 80% stake in the company.

Last month, Mr. Feinberg demanded executive pay cuts at seven companies that had received Treasury funding, including AIG. The restrictions called for bailed-out companies to reduce total compensation for their top 25 highest-paid employees by 50% on average, with some executives’ salaries reduced as much as 90%. In addition, Mr. Feinberg said salaries at the insurer could not exceed $500,000 a year.

According to the report, Mr. Benmosche and other AIG board members met with Mr. Feinberg in New York last week and discussed the difficulties of complying with pay policies and retaining top executives.

“To be certain, I and the board are indeed frustrated and we are in ongoing discussions with the Treasury and the special master to resolve the uncertainty surrounding the issue. We are all work

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Small business should never over look commercial auto insurance as it is one of the most important aspects of the business.  If your business uses a vehicle or even a fleet of vehicles you should contact your insurance specialist or go to our home page and request a commercial insurance quote.  Make sure to give your insurance specialist the full story of who is driving vehicles.  It is wise to always carry uninsured motorist protection even if you have a policy for workers to not let anybody drive or ride in the vehicle.  Accidents happen and you need to be protected. 

How many vehicles should you insure for your business? 

Commercial auto insurance companies often separate coverages based on type and number of vehicles in your fleet.  It is wise to insure every vehicle as you never know when you will need the protection and you are likely going to get a discount for fleet insurance.

Results were announced three days after Mr. Buffett revealed the biggest acquisition in his 44 years running Berkshire, a $26 billion takeover of Burlington Northern Santa Fe Corp. Berkshire had already owned 23% of the nation’s second-largest railroad operator.

Third-quarter net income for Omaha, Neb.-based Berkshire rose to $3.24 billion, or $2,087 per Class A share, from $1.06 billion, or $682, a year earlier.

Excluding investments, operating profit fell less than 1% to $2.06 billion, or $1,325 per share, from $2.07 billion, or $1,335. On that basis, analysts expected profit of $1,308.25 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 7% to $29.9 billion.

Berkshire benefited as rising stock markets boosted the value of its investments in companies such as Coca-Cola Co., Goldman Sachs Group Inc. and Wells Fargo & Co.

Results included $1.13 billion of derivatives gains, mainly from contracts related to junk bond credit quality and to a lesser extent from the performance of four stock market indexes in the United States, Europe and Japan.

Rising stocks helped boost Berkshire’s book value to $126.07 billion, or $81,247 per share, up 10% from three months earlier and 15% from year-end.

Mr. Buffett often touts book value, which reflects assets minus liabilities, as a good gauge of Berkshire’s health.

Insurance, which typically generates half of Berkshire’s results, benefited from the quietest Atlantic hurricane season in more than a decade.

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Kenneth Feinberg said he is still reluctant to use those powers, which let him recoup salary and bonuses already paid out to employees at companies that currently hold or have paid back funds from the U.S. government’s Troubled Asset Relief Program (TARP).

“I think that exercise of discretion should be very, very narrow,” Mr. Feinberg said during a conference on executive compensation organized by the University of Maryland.

He said he could start negotiating with specific companies about clawbacks after he has finished his next task: setting compensation structures at seven firms that have received “exceptional” TARP funds.

Mr. Feinberg said he will complete that task near the end of this month or in early December. The compensation structures will apply to the 26th to 100th highest-paid workers at the seven firms, and those people “will likely receive less compensation” after his rulings, Mr. Feinberg said.

Last month, Mr. Feinberg slashed compensation for the top 25 earners at the seven companies for the final two months of the year, when bonuses are typically paid.

The seven companies are American International Group Inc., Bank of America Corp., Citigroup Inc., General Motors Co., Chrysler, GMAC and Chrysler Financial.

He generally did not claw back pay as part of those rulings, but Mr. Feinberg did determine that retiring Bank of America Chief Executive Ken Lewis should receive no more pay for 2009 and will have more than $1 million of his prior pay clawed back.

Mr.

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