Eric Andersen to replace Zaffino as AIG chief executive

(Sharecast News) - US insurer AIG said on Tuesday that chairman and chief executive Peter Zaffino plans to transition to executive chair and retire as CEO by mid-year. Insurance industry veteran Eric Andersen will join as president and CEO-elect of AIG, with effect from 16 February. He will report to Zaffino and is expected to assume the role of CEO and join the board of directors after 1 June, following an orderly transition period.

Zaffino said: "I am incredibly proud of our colleagues and the extraordinary progress we have delivered during my tenure to make AIG a top industry performer. With significant support from the AIG board of directors, we have returned AIG to vastly improved profitability, significantly strengthened our balance sheet, and built tremendous financial flexibility. These efforts have resulted in exceptional strategic, operational and financial performance, underpinned by our disciplined culture of underwriting excellence.

"From this position of strength, I am confident that now is the appropriate time to begin to transition leadership of the company. We could not have chosen a better person than Eric Andersen to steward the company's next chapter. Eric is an incredibly accomplished and widely respected insurance executive, and we have worked together closely during my tenure at AIG. Eric's deep understanding of our company and our industry ideally positions him to become AIG's next CEO as the company continues to drive long-term profitable growth and value for all our stakeholders."

Andersen joins AIG from Aon, where he was mostly recently a member of the Executive Committee and served as a strategic advisor to the company's president and CEO.

Over nearly three decades with Aon, he held senior leadership roles including president of Aon, CEO of reinsurance intermediary Aon Benfield, and CEO of Aon Risk Solutions Americas.

At 1440 GMT, AIG shares were down 5.7% at $79.50.