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American International Group (AIG) will undergo a major restructure, reorganizing its business into three units.
The move marks the first strategic decision made by the company’s new CEO, Brian Duperreault. Formerly of Hamilton Insurance Group, Duperreault assumed his responsibilities last May to replace former CEO Peter Hancock.
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With the new structure, AIG will operate through a general insurance business unit, a life and retirement unit, and a standalone technology unit.
General Insurance will include Commercial, Personal Insurance, and U.S. and international field operations. Life & Retirement will include Group Retirement, Individual Retirement, Life, and Institutional Markets, a statement from the company said.
Duperreault has chosen Peter Zaffino to lead AIG’s general insurance unit. Zaffino was previously the head of Marsh & McLennan’s brokerage business, and was originally Duperreault’s choice as AIG’s chief operating officer.
Kevin Hogan has been tapped to lead the life and retirement unit. Hogan is an AIG veteran and most recently ran the consumer insurance unit.
The company said that Seraina Macia will serve as the chief executive overseeing the technology unit. She is the former head of Hamilton USA.
The current CEO of AIG’s commercial unit, Rob Schimek, will leave the company by the end of October, a release mentioned.
“I could not be more proud of what this company has accomplished over the last 12 years, from navigating the financial crisis and winning back the confidence of our partners and clients, to focusing on innovations that have outpaced the market,” Schimek said in a letter to employees.
“[The restructuring] better aligns with how investors actually prefer to analyze AIG,” Keefe, Bruyette & Woods analyst Meyer Shields told Reuters.
The changes put a greater emphasis on product underwriting rather than the company’s relationship to clients, commented Credit Suisse analyst Ryan Tunis. The company, however, still needs more hires with commercial underwriting expertise, he added.
