NU Online News Service, Feb. 16, 3:10 p.m.EST

Chartis companies have been able to retain 90 percent of theircustomers despite the economic turmoil American International Grouphas endured since 2008, AIG Chief Executive Officer RobertBenmosche said at an investment conference Wednesday.

“We still do business today with 97 percent of the Fortune1000,” Benmosche said.

“This is not about getting clients,” he said. “It's about doingmore with clients.”

Benmosche made his comments at the Bank of America Merrill LynchInsurance Conference held inNew York.

Discussing a broad range of topics, Benmosche said AIG is in theprocess of upgrading its worldwide accounting system and taking ahard look at its “catastrophe load and its reinsurance contracts,”and is assessing how to budget going forward for potentialcatastrophic losses.

He noted that Peter Hancock, Chartis CEO has recently hired achief science officer.

“We are going to start studying the data around the globe toreally start to better understand what patterns are happening outthere,” Benmosche said,

And, on another topic, Benmosche said he is not concerned aboutthe company being designated as systemically significant, andtherefore subject to regulation by the Federal Reserve Board.

“People say, 'Are you worried about being a SiFi? Are youworried about the Federal Reserve?' No,” Benmosche said. “Iwelcome it.”

He said AIG has “an enormous amount of money” sitting at theholding company, not at the regulated insurance entities, so thecompany has enough capital to be flexible in dealing with problemsat the operating level.

Benmosche also discounted talk that Chartis has been able tomaintain its customer list by substantively underpricing itsproducts.

“The fact is that is not true,” Benmosche said. “We'vedemonstrated that with the data.”

He added that the company wants to make sure it gets “arisk-adjusted profitability in Chartis, which means at leastearn your cost of capital.

“Don't kid yourselves that you can earn money ininvestments and other things outside the combined ratio,” Benmoschesaid.

“Get it right, and earn your cost of capital and then amake a profit on top of it.”

He said the reorganization of Chartis is almost complete andthat AIG plans to grow Chartis “by doing more consumer businessaround the globe and by continually focusing on growtheconomies.”

In his comments, Benmosche said the company is nearing adecision on the way it will divest its aircraft-leasing subsidiary,but is being cautious and will take its time in order to ensure itgets the most for this business.

Noting that the leasing subsidiary has more than $35 billion inplanes on its books, he said “you are dealing with a big nutin here.”

He said he will determine the best way to divest the company “bydoing what makes the most sense for the company, and we'llexamine everything.”