American International Group Inc. has announced a separation of its life and retirement businesses. At the same time, the company named a new chief executive officer.
“Over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying general insurance, diversifying life and retirement, significantly strengthening AIG's capital and liquidity position, and building a world-class team,” Chief Executive Officer Brian Duperreault said in a statement.
“This foundational work has positioned AIG to pursue a separation of life and retirement, enabling both companies to prosper as stand-alone entities,” he added.
The move was met with support from President and Global Chief Operating Officer Peter S. Zaffino, who was named CEO effective March 1. He will retain his position as president and has been appointed director, effective immediately. Duperreault will become executive chairman.
In a statement Zaffino said: The company's “businesses can be further strengthened by separating life and retirement from AIG, which we believe will enable each entity to achieve a more appropriate and sustainable valuation.”
AIG said its executive management team, with assistance from independent financial and legal advisers and oversight from the board of directors conducted a “comprehensive review” of the company's current composite structure, including strategic, operational, capital and tax implications.