AIG CEO Zaffino to step down and transition to executive chair

[NEW YORK] Insurance giant American International Group (AIG) said on Tuesday (Jan 6) that its chief executive officer Peter Zaffino will step down after June, and move into the role of executive chair of the board.

Zaffino is credited with leading AIG through a multi-year turnaround, reversing years of underwriting losses, and delivering five consecutive years of underwriting profitability from 2021 to 2025.

AIG had spent years struggling to regain its footing, after a US$182 billion US taxpayer bailout in 2008 saved the insurer from collapse during the financial crisis.

Since becoming CEO in March 2021, he has divested non-core assets, integrated generative artificial intelligence into operations and invested in modernisation efforts across the company.

AIG shares have climbed more than 85 per cent during Zaffino’s tenure.

“Peter’s vision, tireless dedication and laser-focused execution have fundamentally reshaped AIG, restoring its reputation as a global leader,” said John Rice, AIG’s lead independent director.

The company named insurance industry veteran Eric Andersen as its new president and CEO-elect, effective Feb 16.

On Tuesday, the stock was down nearly 5 per cent in premarket trading.

Andersen most recently served as a member of Aon’s executive committee, and strategic adviser to the company’s president and CEO.

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He also served as the president of the insurance broker from 2020 to 2025, and grew its market value from US$35 billion to US$85 billion. Andersen is expected to assume the role of CEO and join the board of directors after Jun 1, AIG said. REUTERS