Peter D. Hancock, president and chief executive officer, has informed AIG’s Board of Directors of his intention to resign. As part of the transition plan, Hancock will remain as CEO until a successor has been named. The Board of Directors will conduct a comprehensive search for his successor.
“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,” Douglas M. Steenland, AIG’s chairman of the Board, said. “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.”
Hancock took time to thank his colleagues.
“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 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 was named president and chief executive officer of AIG in September, 2014, when he was also elected to the AIG Board of Directors. Previously, he served as CEO of AIG Property Casualty. He joined AIG in 2010 as executive vice president, Finance, Risk, and Investments.
He said the decision was based on dipping shareholder support.
“I believe this is the right decision to make for the company and all its stakeholders,” said Hancock. “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.”
According to KBW analysts, “The stock may be weak today on the incremental uncertainty, but we view this as a significant positive. We agree with several elements of the current strategy, but Mr. Hancock’s past (as head of P&C) and current underperformance makes it difficult to see how AIG could demand employee accountability.”
The firm suggested that though it would be hard to find a qualified replacement given the troubles AIG has faced in recent years, there have been successful turnarounds by P/C companies over the past decade, including Aon, CNA and XL.
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