AIG CEO Zaffino to step down and transition to executive chair

Jan 6 (Reuters) – Insurance giant American International Group said on Tuesday CEO Peter Zaffino will step down after June and move into the role of executive chair of the board.

Zaffino is credited with leading AIG through a multi-year turnaround, reversing years of underwriting losses and delivering five consecutive years of underwriting profitability from 2021 to 2025.

AIG had spent years struggling to regain its footing after a $182 billion U.S. taxpayer bailout in 2008 saved the insurer from collapse during the financial crisis.

Since becoming CEO in March 2021, he has divested non-core assets, integrated generative AI into operations and invested in modernization efforts across the company.

AIG shares have climbed more than 85% during Zaffino’s tenure.

“Peter’s vision, tireless dedication and laser-focused execution have fundamentally reshaped AIG, restoring its reputation as a global leader,” John Rice, AIG’s lead independent director, said in a statement.

The company named insurance industry veteran Eric Andersen as its new president and CEO-elect, effective February 16.

The stock was down nearly 5% in premarket trading.

Andersen most recently served as a member of Aon’s executive committee and strategic advisor to the company’s president and CEO.

He also served as the president of the insurance broker from 2020 through 2025, and grew its market value from $35 billion to $85 billion.

Andersen is expected to assume the role of CEO and join the board of directors after June 1, AIG said.

(Reporting by Manya Saini in Bengaluru; Editing by Shreya Biswas and Shinjini Ganguli)