New York insurer AIG names new CEO, mulls split of life and retirement unit

by   |  VIEW 5292

New York insurer AIG names new CEO, mulls split of life and retirement unit

Late on Monday, American International Group Inc. (AIG), the New York-headquartered multinational finance and insurance corporation operating in more than 80 countries, had named its President Peter Zaffino as the insurance behemoth’s Chief Executive Officer who would be succeeding Brian Duperreault on March 2021, while the American multinational insurer had also unveiled a plan to a spin-off of its life and retirement business wings.

On top of that, followed by the release of AIG announcement, shares’ prices of NYSE-listed American insurer gained as much as 6.75 per cent to $33.37 apiece in the post-market trading after wrapping up the day 3.43 per cent down to $31.26 per share.

AIG names new CEO, unfurls plans to split life and retirement businesses

Apart from that, according to AIG statement released late on the day, the New York City-based insurer employing more than 50,000 people across the globe as of December 31, 2019, had named Zaffino as the insurer’s new Chief Executive, who would be succeeding the long-term AIG veteran Duperreault, 73, in March next year, while Zaffino would be the insurance giant’s seventh Chief Executive in less than a decade and a half.

In tandem, AIG had also added that the American multinational insurer was looking to split its life and retirement businesses, which combined had delivered roughly 34 per cent of AIG’s entire 2019 revenue of $49 billion, while the insurer’s general insurance business had yielded an adjusted 64 per cent of its 2019 revenue, AIG said in a statement last month, though the New York-based insurer had also been quoted saying that it had yet to reach a decision on how the insurer would execute the spin off.

Nonetheless, the departing Chief Executive Duperreault of the debt-strapped US insurer, which had taken a hefty header of $182 bullion in US taxpayer bailout back in the 2008s, had largely focused on reinsurances, technology investments and expense cuts, while the target-man Zaffino had been executing the goals aimed at alleviating some of the debt-burdens of the beleaguered US insurer.