American International Group, Inc. (AIG) announced on Monday that it will transition to General Insurance and Life & Retirement segments, as well as a new “standalone, technology-enabled platform.”
AIG said in a statement that it is planning to make changes to its organizational structure. The company will no longer have Commercial and Consumer segments and will transition to: General Insurance, led by Peter Zaffino as CEO; Life & Retirement, led by Kevin Hogan, CEO; and the standalone, technology-enabled platform, led by Seraina Macia, CEO.
“These changes are designed to best position AIG for the future, as a growing, profitable leader in the insurance industry that is famous for its underwriting excellence,” said Brian Duperreault, AIG’s president and chief executive officer, in the statement. “We believe this structure will maximize our global platform by empowering our local geographies, and provide our businesses with the greatest competitive advantage and ability to serve our clients.”
General Insurance and Life & Retirement will each have distinct business units that reflect how business is marketed and underwritten, AIG explained in the statement. General Insurance will include Commercial, Personal Insurance, and U.S. and international field operations. Life & Retirement will include Group Retirement, Individual Retirement, Life, and Institutional Markets.
The company expects that its year-end financial reporting will also reflect the new structure. AIG further intends to align its incentive and performance management systems accordingly.
As a result of the structure changes, Rob Schimek, CEO of Commercial, will be leaving the company at the end of October to pursue other interests. “I would like to thank Rob for his many contributions to AIG over his 12 years with the company,” Duperreault said in the statement. “He has been a valued member of the leadership team, and a great colleague and friend to many. We wish him all the very best with his next endeavour.”
Founded in 1919, today AIG member companies provide a wide range of property and casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. Currently, AIG’s core businesses include Commercial Insurance and Consumer Insurance, as well as Other Operations. Commercial Insurance comprises two modules – Liability and Financial Lines, and Property and Special Risks. Consumer Insurance comprises four modules – Individual Retirement, Group Retirement, Life Insurance and Personal Insurance.