American International Group, Inc. (AIG) has named Peter D. Hancock, currently the companies EVP and CEO of AIG Property Casualty, as President and Chief Executive Officer, AIG, effective September 1. Hancock also will join AIG's Board of Directors.
Hancock will succeed Robert H. Benmosche, who came out of retirement in 2009 (after having served as MetLife's CEO) to take on the president and CEO roles at AIG. At the time, there were serious questions about AIG's ability to survive the financial and political fallout from its disastrous foray into credit-default swaps, which led to an $182 billion government bailout (that has subsequently been repaid).
[In 2012, AIG announced a rebranding of its insurance operations: With Eye on the Future, AIG Returns Core Insurance Operations to AIG Brand]
As of September 1, Benmosche is expected to resign from the AIG Board of Directors and will assume an advisory role at AIG, according to a company statement. In that capacity, he will advise the CEO and continue to be involved in AIG's internal leadership development programs, as well as mentor and coach AIG managers.
"As AIG enters a time of great change and opportunity, we are confident that Peter Hancock is uniquely qualified to lead the company and its employees to future success," said Robert S. Miller, Chairman of AIG's Board of Directors, in the statement. "Peter's deep experience in financial services, including as a strong risk manager; his understanding of the AIG enterprise and the insurance business as a whole; his success in revitalizing AIG's property casualty business; and his strong leadership and inclusive relationship skills position him perfectly to lead the company to an even more prosperous future."
"AIG today is a far stronger company than it was five years ago, and with the crisis well behind us, AIG now is focused on its core mission: to help people and businesses around the world prepare for the future, recover from loss, and retire with confidence. Peter's successful tenure at AIG, including his tireless focus on creating sustainable value via a strategy that achieves the right balance between growth, profitability, and risk has led to a shift to more high value business, better loss ratios, stronger risk management practices, and a stabilization of reserves in AIG's property casualty segment."
Hancock joined AIG in 2010 and was named CEO of AIG Property Casualty in 2011, when the division was reorganized into two major global groups: Commercial and Consumer. He had previously served as EVP, Finance, Risk, and Investments, AIG. Hancock is a former banker -- he joined AIG from KeyCorp, where he was Vice Chairman, responsible for Key National Banking.
In the company statement Hancock pointed to the changes that occurred under Benmosche's watch: "In just under five years, Bob transformed AIG's culture into one that fosters empowerment and tenacity, reinvigorating our employees around the world and enabling them to achieve the impossible. Today, a far stronger AIG has the opportunity to extend our industry-leading positions as we continue to set new standards of quality for our customers and distribution partners worldwide."
Added Miller, "Under Bob's incomparable leadership and vision, AIG has achieved remarkable, and at times, unthinkable, milestones and successes. Bob worked tirelessly to transform AIG and position it for this next chapter: fully repaying the $182 billion of government support AIG received in 2008, plus a profit of $22.7 billion, the largest turnaround in the history of corporate America; divesting non-core assets; streamlining global operations under clear reporting lines; and finding smart opportunities to grow AIG's business."