Quote:
Originally Posted by jyl
As for the rest of AIG, including the profitable insurance businesses, I don't think people should get "zero" bonuses if they've contributed a whole lot, but the overall bonus pool should be far, far smaller than they'd be in ordinary times.
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Smaller indeed. The P&C and General Insurance side of the house is being driven into the toilet as well. The combined ratio jumped from a very profitable 90 in 2007 by almost
20 points(!) to over 109 in 2008. Expense ratio also jumped by more than 8 points from 24 to more than 32 last year.
With those numbers, I fail to see why anyone on the insurance side merits a bonus.
AIGFP is the poster boy, but the insurance guys have nothing to crow about either.
Tim