AIG confirms Hamilton’s Duperreault as new CEO

American International Group (AIG) has officially announced Brian Duperreault as its new president, CEO and director.

Duperreault has resigned as the chairman and CEO of Bermuda-based Hamilton Insurance Group, according to a statement.

The announcement comes days after the information that Duperreault would become the next AIG CEO leaked to the media.

Duperreault succeeds Peter Hancock, who announced his resignation in March, after the insurer's poor financial performance frustrated shareholders and the board of directors. AIG reported a net loss of $3.04 billion for the fourth quarter of 2016, up from a negative $1.84 billion in the same period of 2015.

Douglas Steenland, AIG's chairman of the board, said: "The Board and I want to thank Peter Hancock for his leadership in positioning AIG for the future. During his tenure, Peter set the course for the company to deliver higher quality, more sustainable earnings and dramatically reduced reserve risk. We are grateful for his leadership over the past seven years."

Steenland added: "Brian is uniquely qualified to lead AIG at this important time. Brian has spent his entire career in insurance. He worked for AIG for 21 years at the start of his career, so he knows this company well. He was the CEO of ACE, one of our main competitors. He ran Marsh & McLennan Companies, one of AIG’s largest broker partners.

"At Hamilton, he introduced cutting edge data science and analytics into the insurance business. He is a hands-on leader who has consistently delivered strong bottom-line results. He has demonstrated a passion for deploying new and innovative ways to serve clients. All of this will enable Brian to help AIG achieve its full potential to be the leading insurance company."

CreditSights analysts had previously noted that Dupperault was a former long-time deputy of his mentor Hank Greenberg, who essentially created AIG's multi-line business model, analysts from CreditSights believe that Dupperault is therefore less likely to consider a radical restructuring or split of the company than some other potential candidates. But CreditSights added in its May 11 analyst note that unlike Hancock, Dupperault is a true "insurance guy," representing a "stabilizing force for the company".

Dupperault spent almost 20 years at AIG, before moving on to build ACE into one of the strongest franchises in the business and helping to turn around Marsh and McLennan, the analysts noted.

Prior to Hamilton Insurance, Duperreault was the president and CEO of Marsh & McLennan Companies. Before that, he served for two years as non-executive chairman of re/insurer ACE, and CEO of ACE from October 1994 through May 2004. Duperreault also previously served in various senior executive positions with AIG and its affiliates from 1973 to 1994.

Duperreault commented: "It is a privilege to return and lead AIG. I look forward to building on AIG’s nearly 100-year heritage as one of the world’s leading insurers for its next century.

"In my discussions with the Board and management team, I have been impressed with the progress made. I look forward to working with AIG’s global team to build on this momentum to grow the business, and continue delivering innovative solutions and extraordinary service to clients. I also welcome the opportunity to continue AIG’s work with Hamilton and Two Sigma to become the most technology-enabled and capital-efficient carrier in the industry."

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