In reading over the FAQs from the VERP, there was a specific question regarding Travel Guard employees not being eligible and the answer given was simply that Travel Guard, and any business unit that supports them, were not eligible for a "voluntary" program at this time. I guess that could be taken as either a) Travel Guard will not be subjected to any reduction in force or b) the way they used the word "voluntary" could make one think they will be subjected to an involuntary RIF after the results of the VERP are completed. Anyone here have any insight as to anything being discussed in regards to Travel Guard specifically? Thank you!!
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Sold!
Berkshire already has a travel insurance business. Ironically, I would guess 85% of it is staffed by ex-AIG employees. Walking around the TG office, it's nearly empty. Where there used to be 400+ employees per day in the building, it's down in the low to mid 100's on mandatory in office days. And that includes non-TG AIG employees working out of that office. So, if Berkshire were to buy TG, it would largely be just the name and book of business. The book of business could be something, I guess... But, buying TG doesn't even guarantee the entire book of business comes with it. Because TG is so dependent on Accenture, and the exorbitant costs associated...Beyond that, I would guess the agreements with the existing business would almost require keeping the TG infrastructure, as all the integrations would likely be built specifically to their spec. It'd be costly to keep their ancient infrastructure running to service these customers they'd supposedly be buying. The larger contracts they have would likely cost as much to buy as it would be to just bid for them in the first place.
I guess I say all of this to say that Berkshire would be buying a mess, where their travel insurance arm seems to be built by ex-AIG employees based on lessons learned... And avoiding re-doing it the AIG way. The only benefit they'd be getting is the name. And who knows if that's worth that much these days?
They’re gonna sell TG, probably most consumer businesses, my guess is they’d prefer to sell all of them to one company like Chubb or Berkshire.
That will pivot AIG is a pure play commercial insurer, and then they will either acquire a bank or other insurer who wants to offload their commercial business units, or maybe finally disappear and get acquired by someone like Berkshire or Chubb.
I wish someone had some insight into this. I've been with TG for over 25 years and I'm definitely at a crossroads. I'm completely burnt out but feeling so stuck. It's sad to say but I honestly wish to be RIF'd. Unfortunately, anytime they've ever done RIF's at TG, the managers seem to have the say & I mine relies so heavily on me that I'll never get picked