American International Group, one of the world's largest insurance companies, announced a significant leadership transition Tuesday that will see CEO Peter Zaffino step into the role of Executive Chair by mid-2026, with insurance industry veteran Eric Andersen taking over as the company's next chief executive.
The announcement, disclosed before Tuesday's market open, sent AIG shares down more than 1% in premarket trading as investors digested the implications of the leadership change. Andersen, who joins AIG from global professional services firm Aon, will begin as President and CEO-elect on February 16, with the full CEO transition expected to complete after June 1, 2026.
Zaffino's Transformation Legacy
Peter Zaffino's tenure as AIG CEO, which began in March 2021, will be remembered as one of the most successful turnarounds in the company's 106-year history. He inherited an insurer that had struggled for years with underwriting losses, bloated operations, and lingering reputational damage from the 2008 financial crisis when the company required a $182 billion government bailout.
Under Zaffino's leadership, AIG achieved remarkable results:
- Five consecutive years of underwriting profitability: 2021 through 2025 marked the longest streak of disciplined underwriting in the company's recent history
- $19 billion returned to shareholders: Through stock repurchases and dividends over the past three years
- Strategic repositioning: Completed the spinoff of the life and retirement business, allowing AIG to focus on property and casualty insurance
- Operational efficiency: Reduced the combined ratio—the key measure of underwriting profitability—to competitive levels
"Peter's vision, focus, and execution have transformed AIG into one of the leading global property and casualty insurers. His transition to Executive Chair will ensure continuity while Eric brings fresh perspective and deep industry relationships to drive the next chapter of growth."
— AIG Board of Directors statement
Who Is Eric Andersen?
Eric Andersen brings nearly three decades of experience in the insurance and reinsurance industry, most recently serving as a member of Aon's Executive Committee and strategic advisor to the company's President and CEO. His career at Aon included several senior leadership positions:
- President of Aon: Oversaw the company's global operations and strategic direction
- CEO of Aon Benfield: Led the world's largest reinsurance intermediary
- CEO of Aon Risk Solutions Americas: Managed the company's risk management and insurance brokerage operations across North and South America
Andersen's background as an intermediary—the companies that broker insurance and reinsurance transactions—gives him deep relationships across the insurance industry. He has worked with virtually every major insurer and reinsurer globally, providing him with unique insight into AIG's competitive positioning and growth opportunities.
The Strategic Rationale
AIG's board emphasized that the leadership transition reflects the company's confidence in its current strategic direction rather than any desire to change course. With the turnaround largely complete, the company can focus on growth and market share expansion under new leadership.
Andersen's appointment signals several potential priorities:
- Distribution relationships: His background suggests a focus on strengthening AIG's partnerships with brokers and agents who distribute its products
- Reinsurance optimization: Expertise in reinsurance markets could help AIG better manage its risk portfolio and capital efficiency
- International expansion: Global relationships may support growth in key markets outside the United States
Market Reaction
The modest decline in AIG shares Tuesday morning reflects the uncertainty that accompanies any CEO transition, even planned ones. Investors typically award premium valuations to companies with stable leadership, and the change introduces an element of execution risk.
However, analysts noted several mitigating factors:
- Zaffino's continued involvement as Executive Chair provides continuity
- The extended transition period allows for orderly handoff of responsibilities
- Andersen's industry standing suggests he can maintain key relationships
- AIG's improved financial position means the new CEO inherits a much stronger company
Insurance sector analysts will likely update their ratings and price targets in coming days as they assess Andersen's strategic vision and any changes he might bring to AIG's priorities.
Industry Context
The leadership change at AIG comes during a period of significant transition across the insurance industry. Several major insurers have announced CEO changes in recent months as companies position for an evolving risk landscape shaped by climate change, cyber threats, and economic uncertainty.
For AIG specifically, the transition occurs as the property and casualty insurance market cycles from a "hard market"—characterized by rising premiums and strict underwriting—toward potentially softer conditions. How well the company navigates this shift under new leadership will be closely watched.
Looking Ahead
Andersen is expected to speak publicly about his vision for AIG after officially joining the company on February 16. Investors will be listening for any signals about strategic priorities, capital allocation plans, and potential changes to the company's growth targets.
For Zaffino, the move to Executive Chair allows him to step back from day-to-day operations while remaining engaged with the company he helped transform. The arrangement is similar to transitions at other major corporations where successful CEOs maintain board-level involvement after stepping down from the chief executive role.
AIG's next chapter begins with a strong foundation. Whether Andersen can build on Zaffino's legacy while charting new growth paths will determine whether the insurance giant continues its remarkable comeback.
