AIA Chief Threatens to Quit

AIA’s chief executive has told friends and industry executives


that he would quit if the UK’s Prudential succeeded in its


US$35.5billion (GBP24.6billion) takeover of the Asian


businesses of AIG.


Mark Wilson has said he would step down once the deal


closed because the proposed combination of both Asian


businesses was “unworkable”.


Hong Kong-based Mr Wilson, 43, joined AIA from AXA in 2006


and boasts more than a decade of senior management experience


in the Asian insurance industry.


According to an undisclosed source, Mr Wilson “remains loyal”


to AIA, but does not plan to stay with the merged group


because he feels it is “a disaster waiting to happen”.


How many senior AIA executives, actuaries and agents remain


following a takeover is crucial for the combined group if it is to


execute the integration and deliver the sales increase being


flagged to investors to justify the price.


The news of Mr Wilson’s threatened departure comes amid


Prudential’s battle to win shareholder support for the takeover


and the US$21billion rights issue to fund it ahead of a vote on


June 7.


Investors have expressed concerns about the price tag for AIA


and Prudential’s ability to manage a complex integration in 12


Asian markets.


The uncertainty over Mr Wilson’s future will also cast a shadow


over Tuesday’s dual listing of the UK life assurer in Hong Kong


and a secondary listing in Singapore.


Prudential said on Monday that about 2 per cent of its shares


had been registered in Hong Kong ahead of the listing.


The Prudential prospectus for its rights issue released last


week said Mr Wilson would remain chief executive of AIA after


the takeover. However, it would be relatively unconcerned if he


did leave, according to one person familiar with Prudential.


The company told investors that it had moved quickly to stabilise


AIA by putting retention packages in place for senior


individuals. “Getting the people aspect right is vital and we


have moved quickly to stabilise the AIA business and put in


place appropriate retention arrangements,” Tidjane Thiam,


Prudential chief executive, said at an analyst presentation.


It was unclear whether Mr Wilson was offered these retention


arrangements. But the AIA chief has deep misgivings about


Prudential’s ability to execute the transaction or manage


relations with AIA staff and agents, people familiar with the


situation said.


Steve Roder and Peter Cashin, AIA’s finance and legal chiefs


respectively, have already quit the company.


Mr Wilson is widely credited with saving AIA last year when


AIG, its US parent company, nearly collapsed, earning the


loyalty of senior staff and agents. He also prepared AIA for an


initial public offering that was aborted three months ago in


favour of the Prudential deal.