AIG CEO steps down due to lack of shareholder support
American International Group (AIG) has been forced to embark on a search for a new chief executive after its current leader revealed he intends to resign.
Peter Hancock, president and chief executive officer of AIG, indicated that he feels he does not have the support of shareholders, saying this could lead to uncertainty for the insurer if he continues.
"Without wholehearted shareholder support for my continued leadership, a protracted period of uncertainty could undermine the progress we have made and damage the interests of our policyholders, employees, regulators, debtholders, and shareholders," he said.
AIG reported a net loss of $3.04 billion for the fourth quarter of 2016, up from a negative $1.84 billion in the same period of 2015, impacted by a $5.6 billion prior year adverse reserve development. As a result, AIG recorded a full-year net loss of $849 million compared to a net income of 2.20 billion in 2015.
Hancock, who will remain as the CEO until a successor has been named, was named president and CEO of AIG in September 2014, and was also elected to its board of directors. Previously, Hancock served as CEO of AIG Property Casualty. He joined the company in 2010 as executive vice president, finance, risk, and investments.
"Peter's accomplishments at AIG, including his role in the company's turnaround and in driving shareholder value, are immeasurable," said Douglas Steenland, AIG's chairman of the board.
"He tackled the company’s most complex issues, including the repayment of AIG’s obligations to the US Treasury in full and with a profit, and is leaving AIG as a strong, focused and profitable insurance company. The Board thanks Peter for his many contributions.
"As CEO, Peter developed the two-year strategic plan announced in January 2016. The Board believes strongly that this is the right plan and remains committed to the financial targets and objectives we’ve announced. The Board recognizes the value of the combined strength of AIG’s Consumer and Commercial franchise, and the capability of this management team.”
Hancock said: "It has been an incredible privilege and honor to run this great company and work with the many talented colleagues who serve the needs of their clients every day. I’m extremely proud of our organization and the steps we have taken to position the company for success long into the future.
"We are on course to deliver higher quality, more sustainable earnings and have dramatically reduced reserve risk. The Board and I are confident in the ability of this team to continue to execute our strategic plan and deliver strong results.
"I believe this is the right decision to make for the company and all its stakeholders. Without wholehearted shareholder support for my continued leadership, a protracted period of uncertainty could undermine the progress we have made and damage the interests of our policyholders, employees, regulators, debtholders, and shareholders."