American International Group (AIG) announced on Thursday that its president and CEO, Peter D. Hancock, has informed the board of directors of his intention to resign, citing lack of shareholder support.
As part of the transition plan, Hancock will remain as CEO until a successor has been named; the board of directors will conduct a “comprehensive search” for a successor.
“I believe this is the right decision to make for the company and all its stakeholders,” Hancock said in a press release. “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.”
Hancock was named president and chief executive officer of AIG in September, 2014, when he was also elected to the AIG board of directors. Previously, Hancock served as CEO of AIG Property Casualty. He joined AIG in 2010 as executive vice president of finance, risk and investments.
Douglas M. Steenland, AIG’s chair of the board, said in the release that Hancock’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.”
Steenland noted that as CEO, Hancock developed a two-year strategic plan announced in January 2016. “The board believes strongly that this is the right plan and remains committed to the financial targets and objectives we’ve announced. The board recognizes the value of the combined strength of AIG’s consumer and commercial franchise, and the capability of this management team.”
Hancock said that he’s “extremely proud of our organization and the steps we have taken to position the company for success long into the future. We are on course to deliver higher quality, more sustainable earnings and have dramatically reduced reserve risk. The board and I are confident in the ability of this team to continue to execute our strategic plan and deliver strong results.”
Founded in 1919, AIG’s member companies provide a range of P&C insurance, life insurance, retirement products and other financial services to customers in more than 80 countries and jurisdictions, including Canada.
On Feb. 14, AIG reported a net loss of US$3.04 billion in the fourth quarter of 2016 compared to a US$1.84 billion net loss in Q4 2015. For the full year of 2016, the net loss was US$849 million compared to net income of US$2.196 billion for 2015.