Baugh backs his business

See story: 'AIG will look after you'

Since the near-collapse of AIG in September Lex Baugh has come out fighting on several occasions.

The AIG UK managing director has been quick to defend his arm of the business as its parent company in the US faces financial turmoil and is forced to sell off parts of its global business. Baugh has kept the UK business at arms-length from the distractions that have rocked the beleaguered US insurer across the Atlantic in Wall Street.

In the UK AIG faces stiff competition. Baugh has worked tirelessly to fight off the threat of rival insurers from poaching staff and business. In recent weeks he had declared that it was business as usual and brokers should have no fears.

His recent message to broking partners, just hours after AIG announced a mssive Q3 loss and further details of its restructured US government bail-out package, was a heart-felt plea.

After detailing how the new rescue package can only bring greater rewards for the business or “durable capital structure and greater financial flexibility” as Baugh puts it, he reassures brokers that they can be confident the businesses long-term future has been restored. “You can place and renew business with us without question”, he says.

He then points to AIG’s 2008 Q3 results, most notably reporting a $24.47bn net loss, and asks brokers to bear in mind that “while the macro economic landscape has deteriorated markedly since Q3, the third quarter was hostile for virtually every sector across the board.”

Finally, Baugh’s personal message to brokers set the tone for what has been a rough ride.

“I promised you over a month ago that despite the current economic conditions we would continue to serve you well with the things that drew you to us in the first place - our enviable product range, premier customer service and rapid response to claims. Today we renew that commitment.”

“Personally, I would like to thank you for the support, patience and time you have given AIG UK. It is during these difficult times that great partnerships are forged and I am convinced that our businesses will continue to prosper together.”

He signs off subtly as ‘Lex’, giving brokers further reassurance that all is calm at AIG UK.