Listen to this article
Peter Hancock is set to resign his post at insurance giant AIG as the president and chief executive officer said that there had been a lack of shareholder support for his continued role at the helm.
His departure comes less than a month after the group reported a $3bn quarterly loss that raised fresh concerns about the insurer’s recovery efforts.
The AIG chief said in a statement:
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.
The chief executive, who has held the top job at AIG for two and a half years, has been disposing of assets and cutting costs in an attempt to revive the insurance giant’s fortunes.
But returns remained subpar and the group took a series of reserve charges as claims costs have been wider than expected. The insurer had been targeted by the activist investors Carl Icahn and John Paulson, who last year secured seats on the board.
Douglas M. Steenland, AIG’s chairman of the board, said:
Peter’s accomplishments at AIG, including his role in the company’s turnaround and in driving shareholder value, are immeasurable. He tackled the company’s most complex issues, including the repayment of AIG’s obligations to the U.S. 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.
He added that AIG would continue with its two-year strategic plan announced by Mr Hancock in 2016 and that it believed strongly the plan was the right one and that it remained committed to its financial targets and objectives.
The AIG board said it was now searching for a successor to Mr Hancock, who will remain in his position until a replacement is found.