American International Group’s President and Chief Executive Officer Peter Hancock has handed in his resignation, citing a lack of support for his tenure.
Following difficult times at AIG, which has seen the company downsizing and seeking to get activist shareholders on-board with Hancock’s strategy, it appears he’s had enough and is stepping down.
Hancock explained; “I believe this is the right decision to make for the company and all its stakeholders. Without wholehearted shareholder support for my continued leadership, a protracted period of uncertainty could undermine the progress we have made and damage the interests of our policyholders, employees, regulators, debtholders, and shareholders.”
AIG’s Chairman of the Board, Douglas M. Steenland, added; “Peter’s accomplishments at AIG, including his role in the company’s turnaround and in driving shareholder value, are immeasurable. He tackled the company’s most complex issues, including the repayment of AIG’s obligations to the U.S. Treasury in full and with a profit, and is leaving AIG as a strong, focused and profitable insurance company. The Board thanks Peter for his many contributions.”
Steenland continued, “As CEO, Peter developed the two-year strategic plan announced in January 2016. The Board believes strongly that this is the right plan and remains committed to the financial targets and objectives we’ve announced. The Board recognizes the value of the combined strength of AIG’s Consumer and Commercial franchise, and the capability of this management team.”
“It has been an incredible privilege and honor to run this great company and work with the many talented colleagues who serve the needs of their clients every day,” said Mr. Hancock. “I’m extremely proud of our organization and the steps we have taken to position the company for success long into the future. We are on course to deliver higher quality, more sustainable earnings and have dramatically reduced reserve risk. The Board and I are confident in the ability of this team to continue to execute our strategic plan and deliver strong results.”
Hancock became President and Chief Executive Officer of AIG in September, 2014, having previously served as CEO of AIG Property Casualty. He has been with AIG since 2010, when he joined as Executive Vice President, Finance, Risk, and Investments.
A transition period will help AIG maintain some continuity, with Hancock staying as CEO until a successor has been named. The AIG Board of Directors will conduct a comprehensive search for his successor.