AIG names new CEO amidst business transitions
AIG announced that Peter Zaffino will succeed Brian Duperreault as CEO next year as the insurer pursues a split of its business units.
AIG announced new leadership changes on Oct. 26 amidst ongoing COVID-19 challenges and high-frequency catastrophe events.
Peter S. Zaffino will assume the role of CEO of AIG in addition to his position as president of the global organization, effective March 1, 2021, the company said in a press release. Zaffino has also been appointed as director, effective immediately.
Current CEO Brian Duperreault will become executive chairman of the board of directors, and Douglas M. Steenland, currently independent chairman of the board, will become lead independent director. Both roles also are effective on March 1, 2021.
Zaffino most recently served as president and global chief operating officer at AIG — the former role he was promoted to in January 2020. In a statement, Zaffino stated, “I am honored to succeed Brian as chief executive officer of AIG and want to thank him and the AIG board of directors for this opportunity. I look forward to leading AIG’s next phase on our journey to becoming a top-performing company.”
Before his role as CEO of AIG, Duperreault served as chairman and chief executive officer of Hamilton Insurance Group from 2013 to 2017. Commenting on Zaffino’s appointment, Duperreault said in a statement, “I want to thank the AIG directors for their continued support and congratulate Peter on his well-deserved election as the next chief executive officer of AIG. Peter has been instrumental in the significant turnaround and transformation at AIG, and his vision, determination, and pursuit of excellence will help ensure the company’s future success.”
Business changes and losses
AIG released an update on third-quarter 2020 catastrophe losses in a separate press release on Oct. 26. According to the company, losses in its general insurance segment totaled $790 million before tax, including $185 million of estimated COVID-19-related losses, primarily in travel, event cancellation, trade credit, property, agriculture, and casualty books of business.
The insurer also announced its intention to separate the life & retirement business. Katherine Chiglinsky writes in a recent Bloomberg article that “dropping [the life & retirement business] that accounted for about a third of AIG’s revenue last year leaves a much simpler company for Peter Zaffino… For years, investors and analysts have questioned whether AIG would make more sense if it split in two: a property-casualty operation serving corporations and wealthy individuals, and a life-insurance and retirement business.”
Zaffino said in a release: “Across AIG, we have made significant progress executing on our strategy to deliver value for our clients, distribution partners, shareholders and other stakeholders. Our businesses can be further strengthened by separating life & retirement from AIG, which we believe will enable each entity to achieve a more appropriate and sustainable valuation.”
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