By Mark E. Ruquet, associate editor, NationalUnderwriter

Robert H. Benmosche, who last week came out of retirement totake over as American International Group's fourth chief executiveofficer in just more than a year, drew high praise from manyleading agents and brokers. Still, some cited concerns about hislack of property and casualty insurance background, as well as thechallenges he faces in restoring his firm's tarnishedreputation.

Benmosche, who last served as chair, president and CEO ofMetLife before retiring in 2005, took the reins this week from EdLiddy, the former Allstate chair and CEO. "Now he has passed thebaton to me, and I look forward to continuing the race," he said ina statement. "With my AIG colleagues, we will focus on thismission--maximizing the value of the company's assets and meetingall of our stakeholder obligations." No one expects a cakewalk forthe 65-year-old Benmosche. AIG still faces significant hurdles topay back tens of billions in federal loans, while selling more ofits operating units and maintaining the viability of its remainingsubsidiaries in the midst of a deep recession as well as stillshaky investment and capital markets. However, perhaps the biggesthurdle Benmosche will confront will be restoring the reputation ofAIG--which reflects on its insurance subsidiaries--as a premierorganization in the eyes of its customers, according to TomAdderhold, president of Preferred Insurance Group, a brokerage inDuluth, Ga. "AIG, on paper, is as solid as you can get," he said,but the major challenge for the new chief executive will beinstilling "confidence again" in the company, its agency force andcustomers, he added. Adderhold said the word on the street is thatBenmosche is a good listener who "talks to those in the trenchesbefore making a decision," noting that a recent telephoneconference with AIG company executives in regional offices leftthem upbeat and impressed. "If he can stabilize AIG and return itto its leading position in the industry, it will be a win-win foreverybody," Adderhold concluded. One word of caution came via C.Brett Nilsson, senior vice president of The Buckner Company inOgden, Utah, and chair of the Independent Insurance Agents andBrokers of America. While wishing the new chief executive well, heexpressed his personal opinion that Benmosche is an unknownquantity in the property and casualty insurance marketplace.However, "he certainly has been successful in past endeavorsthroughout his life with MetLife, as well as both securities andbanking ventures," he noted, but whether that will translate intothe property-casualty remains to be determined. "AIG has also gonethrough a number of changes over the most recent past, and if theyare able to secure some stability it could do nothing less thancalm the marketplace," according to Nilsson. "Most of what I haveheard regarding AIG revolves around the newer entity of AIUHoldings, the property and casualty division of AIG," he noted,referring to property-casualty units that will now be branded asChartis. "This division appears to have calmed down and offeredsome reassurance that the insurance arm of AIG is alive and well,as it historically has been--unlike many of the other servicesoffered outside of insurance to various customers," he said.Nilsson added that "it is the government involvement as well as theancillary interests that have affected the poor public image of AIGin the past year, as the company concentrates more on paying backits government-backed loans instead of running the business."Thomas Minkler, president of the Clark-Mortenson Agency in Keene,N.H., said Benmosche "faces a huge task to get [the company] backto a place of normalcy and focused on the insurance side of theaisle." Reacting to the appointment, the world's three biggestbrokers issued statements praising Liddy and congratulatingBenmosche on his appointment. "We all owe Ed Liddy a debt ofgratitude for all of his work and effort on behalf of AIG and theinsurance industry," said Greg Case, president and CEO of Aon Corp."Benmosche is an excellent choice to succeed Ed in taking up themantle of leadership to guide AIG." "Ed Liddy is to be commendedfor stepping into the breach and leading AIG under very tryingconditions," said Joe Plumeri, CEO and chairman of Willis. "Icongratulate Bob Benmosche on his appointment. He's got a strongtrack record of leadership and decisiveness that will serve thecompany well, and I look forward to working with him." "Ed Liddydid a terrific job under very difficult circumstances and we wishhim well," said Brian Duperreault, president and CEO of Marsh &McLennan, the parent company of insurance broker Marsh. "At Marsh,we very much look forward to doing business with Mr. Benmosche andwish him great success in his new role." One insurance companyexecutive who worked with Benmosche, and requested anonymity, saidAIG has gotten a tough boss who will be well informed and not takea lot of abuse. "Don't expect Mr. Benmosche to be a punching bagwhen he talks to Congress," the executive said. "He will speak hispiece and will not take the abuse Mr. Liddy did when explaining hisposition [to members of Congress]." Benmosche is a hands-onexecutive who "operates by the numbers," he noted. "Managers at AIGought to be stepping up their efforts because he will demandresults," said the source. "He will take home reams of reports andhe will come back the next day ready to ask the tough questions."Julie Burke, managing director for Fitch Ratings, observed that AIGhas gotten an executive with a "pretty expansive resume," whichshould serve his new company well. Still, he has an enormous taskahead of him, she noted, adding that the job is no less formablethan what he faced when handling the MetLife demutualization in2000.

(Additional reporting by Arthur D. Postal)

Mark E. Ruquet is an associate editor with National Underwriter,a member of Summit Business Media's P&C Magazine Group, whichincludes American Agent & Broker.