American International Group Inc. (NYSE: AIG) announced after markets closed on Tuesday that Peter D. Hancock who is currently an executive vice president and CEO of AIG Property Casualty will succeed Robert H. Benmosche as AIG’s president and CEO effective September 1st.
Hancock will also join AIG’s board on that date, and in an interesting turn of phrase, Benmosche “is expected to resign from the AIG Board of Directors” on that date and assume an advisory role at the insurance giant. What happens if Benmosche decides he wants to stay?
It’s hard to argue that Benmosche’s tenure at AIG was a success. He brought the company back from a near collapse when the financial system seized up and and repaid a $182.3 billion federal bailout together with interest amounting to $22.7 billion. The U.S. sold its remaining stake in AIG in late 2012.
Hancock spent 20 years at J.P. Morgan before joining AIG in 2010 and was named as CEO of AIG Property Casualty in 2011. He will now run a company about half the size of the one that existed in 2008 after the divestitures and sales of the past several years.
AIG’s shares dropped about 0.5% in after-hours trading to $54.76 in a 52-week range of $41.53 to $55.44. The stock closed Tuesday at $55.01.