Stempel has thrown his financial muscle behind a number of Island causes ERROR RG P4 20.1.1999 An article in yesterday's Lifestyle section should have stated that Ernest E.

Stempel was the head of American International Group's Bermuda operations -- not its world-wide operations.

During his 58 years with the local AIG office, Mr. Stempel held a number of positions.

Ernest E. Stempel has been a generous, longtime friend of Bermuda.

Through his roles as head of insurance giant, American International Group, and director/trustee of The Starr Foundation and the Ernest E. Stempel Foundation, the Pembroke parish resident has given away millions to cash-strapped charities.

After his recent retirement, Mr. Stempel would not have been faulted for retreating from the spotlight to enjoyed some well-earned rest and relaxation.

But instead he has chosen to continue his charitable deeds, taking a personal interest in the foundations which have helped so many over the years.

Mr. Stempel, a native New Yorker, said it was good fortune that led him to join AIG -- a move which landed him on the friendly shores of Bermuda.

He admitted that prior to joining the firm, he toyed with the idea of either becoming a writer or a lawyer.

"I wrote for my college paper and I was a New York Times correspondent,'' he said. "I also wanted to be a lawyer -- I was sort of torn between the two.

But I turned down a scholarship to law school and my parents weren't happy about that.

"The writing thing didn't work out too well, the offers I had were offers I didn't want or like so I decided I better get a job and work my way through law school. You can't go back and say `hey give me the money' after you turn down a scholarship.'' Fate, and a little help from an uncle, led to a 1938 meeting with American entrepreneur Cornelius Vander Starr which would change Mr. Stempel's life.

In November 1919, Mr. Starr formed a fire and marine insurance agency in Shanghai which he called American Asiatic Underwriters, the first of a series of companies that eventually became American International Group (AIG).

"I got a position with the predecessor company to AIG,'' he recalled. "My uncle was the agent for all of South America at that time and he said why don't you go and see Mr. Starr, who was the founder of the company.

"I went in and they hired me right away,'' he chuckled. "It was a very interesting company and I enjoyed the work. It was all international, we had no business in the States at all.'' Mr. Stempel spent his days working for the insurance company and his evenings attending law school until the Second World War.

"Six months before I was to graduate from law school I had to go into the service,'' he said. "I was in the Navy for three years.'' After his seafaring days, Mr. Stempel returned to an expanded AIG and finished law school and pursued a Masters and Doctorate of Law degrees.

In 1947, a decision was made that non-US business would be run from a single offshore headquarters -- Bermuda.

And in 1953, Mr. Starr chose Mr. Stempel to manage his Bermuda-based operation. He become chairman two years later and held this position until two-years ago.

During his 58 years at the helm of AIG, Mr. Stempel has seen the company grow into one of the most successful US organisations.

He was one of the stalwarts in the development of the Bermuda insurance industry and was the leading force in the formation of the International Division of the Chamber of Commerce in Bermuda, serving as its first Chairman.

In addition to his impact on the local and international insurance scene, Mr.

Stempel has also made his mark by his charitable deeds.

The father of three said it was through the STARR foundation, set by Mr.

Starr, that he became involved in charity work.

"Mr. Starr was always charitably minded,'' he recalled. "And we have companies all over the world and when you are in a community you have to support the community, you have to be good corporate citizens.'' Mr. Stempel is one of the directors of the Starr Foundation which distributes millions of dollars each year to causes around the world.

"The Starr Foundation was my first real exposure to charitable giving on a world-wide basis,'' he said.

But it was when he began to cut back on his work schedule that Mr. Stempel really became deeply involved with charitable giving.

"When I was executive vice president of AIG I was very, very busy so obviously during that era my time for this was minimal. Only since I've sort of given up my titles have I had more time to devote to this.'' And he confessed that over the years, Bermuda probably received quite a bit more funds than most countries.

"They get a disproportionate amount here because of me and my interests here.

I'm a founding member, Bermuda is me and my family's home and I know more about it and the people.

"But still, we have to support places like New York City where we have 5,000 people working and the Philippines where we have 10,000.'' But Mr. Stempel confessed giving away millions of dollars is not as easy as some might think.

"Making money is not easy, but spending it and giving it away wisely is just about as difficult,'' he said. "US foundations have to give away five percent of their principle otherwise the government takes it.'' Few may realise the amount of work that goes on behind the scenes before charitable foundations make sizable donations to charities.

The tough task is being sure money given to a charity actually gets to the people who really need it: "You'd be surprised how many so-called charitable institutions end up spending more money on administration,'' he said.

Mr. Stempel said the Foundation's staff weed through the massive number of requests carefully before the appeals go before the board.

"And when they come up before the board we question things,'' he added. "I'm big on matching grants, I don't like people coming to us saying `hey fund us'.

They should go find other people and we'll give maybe one portion. They should do some work and not just come over to us alone.'' Mr. Stempel said the Starr Foundation supports diverse causes like scholarship funds, schools and medical research in the countries where they do business.

"Once in a while we will support causes in other areas. We gave major support to the recent hurricane victims in Central America because we thought that was a worthwhile cause not because we thought it was going to bring a lot of business to us.'' Locally, one of Mr. Stempel's early projects was to help integrate some of the Island's private schools via scholarship programmes.

"The Starr Foundation has a Bermuda High School/Saltus scholarship programme to try to mix the schools better,'' he explained. "My boys went to Saltus and my daughter went to Bermuda High School For Girls . When I started this there were just the wealthy, white Bermudians there and that's a bad way of educating people.'' The well-known business man also exercises the principle of `share and share alike' with his own money.

Last September, Forbes Magazine listed Mr. Stempel as their 141st on a list of wealthiest Americans and a few years ago Mr. Stempel began sharing some of that personal wealth with the less fortunate.

"Since I've got a reasonable amount of money finally, I didn't have it to begin with, I started my own foundation,'' he explained. "It's a family foundation and I sort of run it, with my three sons and daughter who are trustees.'' The Ernest E. Stempel Foundation supports a variety of both local and American institutions, reflecting the diverse interests of its trustees.

Since its inception, the Foundation has thrown its support behind schools, medical research institutions and population control.

And since three trustees live in Bermuda -- Mr. Stempel and two of his four children live in Bermuda -- he confessed that the Island receives a fair share of his Foundation's funds.

Mr. Stempel also had some words of advice for those who want to make a difference in the community.

"You have to find niches where you can make a difference,'' he said. "If you can afford your time to volunteer to do things, that would be invaluable to a charity.'' Photos by Arthur Bean RESEARCH AID -- Director of the Starr Foundation, Ernest E. Stempel (left), presented a cheque for $200,000 and a total of $49,456 in AIG stock certificates from the Ernest E. Stempel Foundation to Bermuda Biological Station for Research. Biostation director Dr. Anthony Knap and development officer Allison Capstick Carlson were on hand at the American International Building. Both of these grants will provide endowment for scholarships to students from Bermuda and around the world to attend summer courses in marine science at BBSR. The courses are for students at the graduate and advanced undergraduate level. The Starr Foundation grant adds to the C.V. Starr Scholarship Endowment Fund at BBSR, named in honour of the AIG founder.

SCHOOL STOCK -- Ernest Stempel presents American International stock certificates worth $30,000 to Ms Eleanor Kingsbury, Headmistress of the Bermuda High School for Girls and to Mr. Trevor Rowell, Headmaster at Saltus Grammar School. Along with two further stock certificates worth $55,000, Mr.

Stemple also presented a cheque worth $100,000 to the BHS/Saltus Scholarship fund.