AIG names new boss at property casualty unit
March 31, 2011
NEW YORK—The insurer AIG, the recipient of a huge government bailout during the 2008 financial crisis, named a new CEO and management team for its Chartis global property casualty business on Thursday as part of a reorganization of one of its main business units.
American International Group Inc. said Peter Hancock, executive vice president of risk and investments, would replace Kristian Moor as CEO of the Chartis insurance unit. Moor has been with AIG for more than 30 years and will become the unit's vice chairman.</p>
The restructured Chartis will be divided into commercial and consumer groups with supporting claims and underwriting blended into these two operations.
John Doyle, previously CEO of Chartis U.S., will run the global commercial business. Jeffrey L. Hayman, currently Chartis' chief administrative officer, will lead the global consumer business.
AIG nearly went under during the 2008 financial crisis. It had written insurance on the value of hundreds of billions in mortgage investments held by financial institutions. When the investments lost value, AIG could not afford to make good on its contracts. It took government help to stay out of bankruptcy.
The insurer received a bailout package with a total value of $182 billion. The government got a 92 percent stake in the company and hopes to start selling the shares soon to help recoup its money.
AIG is also selling assets to repay the government. Since 2008, AIG has sold 33 businesses and raised more than $57 billion in cash and securities. Last year alone, AIG raised more than $37 billion in cash and securities, primarily by selling two international life insurance divisions.
In February, the company announced an addition of $4.2 billion to loss reserves at Chartis. The performance of Chartis is considered a key to the successful sale of AIG shares by the government.
AIG shares fell 95 cents, or 2.6 percent, to $35.10 in midday trading.
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