The American International Group, Inc. (AIG) Board of Directors has named Peter Zaffino as the company’s new Chief Executive Officer (CEO), with Brian Duperreault set to become Executive Chairman, effective March 1st, 2021.
Zaffino takes on the role alongside his current position as President of the global re/insurer, and has also been appointed to serve as a Director, effective immediately.
As well as the transition of Duperreault to Executive Chairman, AIG has announced that Douglas Steenland, currently Independent Chairman of the Board, will become Lead Independent Director, effective March 1st, 2021.
Commenting on his new role, Zaffino said: “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.”
Duperreault added: “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.”
Speaking on behalf of the AIG Board, Steenland said: “We are grateful to Brian for his leadership and expertise in guiding the strategic repositioning of AIG’s businesses as market leaders and we look forward to his ongoing contributions as Executive Chairman. We are extremely fortunate to have an executive of Peter’s caliber and have great confidence about the future of the company under his leadership.”
Alongside the leadership transitions for its executive team and Board, the company has announced plans to separate its Life & Retirement business from AIG.
AIG’s executive management team, with the help of independent financial and legal advisors and oversight from the AIG Board, undertook a comprehensive review of the firm’s current composite structure, including strategic, operational, capital and tax implications. Following the review, executive management recommended a separation of the business from AIG, and the Board has decided to pursue this.
Both the executive management team and the Board believe that a simplified corporate structure will unlock significant value for shareholders and other stakeholders. Currently, no decision has been made as to how to achieve a full separation, but the Board intends to achieve this in a way that maximises shareholder value and establishes two independent, market leading firms.
Duperreault commented: “Over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying General Insurance, diversifying Life & Retirement, significantly strengthening AIG’s capital and liquidity position, and building a world-class team. This foundational work has positioned AIG to pursue a separation of Life & Retirement enabling both companies to prosper as stand-alone entities.”
Zaffino added: “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.”
As an independent firm, AIG states that the Life & Retirement business will be well placed to build value for shareholders by leveraging a broad product set and diverse distribution to tailor its offerings to best meet evolving needs of both customers and distributors.
Steenland, speaking on behalf of the AIG Board, noted: “The Board worked closely with executive management as they conducted a comprehensive review of AIG’s composite structure, and AIG’s Directors are confident that a separation of Life & Retirement from AIG will create value for shareholders and benefit all stakeholders.”
AIG explains that any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission.