Industry veteran Brian Duperreault has been appointed president and CEO of AIG with immediate effect, the carrier announced earlier this week (15 May).
Duperreault succeeds outgoing AIG CEO Peter Hancock and has concurrently resigned as chairman and CEO of Hamilton Insurance Group.
On his appointment, Duperreault said that it was a “privilege to return and lead AIG” having worked for AIG for 21 years at the beginning of his career, adding that he has “been impressed with the progress made” at the insurance giant.
AIG chairman Douglas Steenland, described Duperreault as "uniquely qualified" to lead the carrier at this current time.
"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", he continued.
Meaanwhile, on a call to analysts, Duperreault vowed to keep AIG whole as a single business. "I recognise the value of AIG's multi-line structure," he said. "I didn't come here to break up AIG. I came here to grow it."
The carrier will pay Hamilton $20mn in exchange for releasing Duperreault from restrictive covenants, with an additional payment of $20 million contingent upon the completion his second year as AIG CEO.
AIG has agreed to pay Duperreault a one-off cash award of $12mn as compensation for unvested Hamilton equity awards, in addition to a onetime, sign-on award of 1.5 million stock options which are set to vest over a seven-year period.
During his initial tenure with AIG from 1973 to 1994, Duperreault climbed the ranks to become chairman and chief executive of American International Underwriters, the carrier’s non-US commercial insurance business, before serving as non-executive chairman of Ace from 1994 to 2004 and the company’s president from 1994 to 1999.
Following that, he was president and CEO of Marsh and McLennan Companies, before moving on to establish Hamilton Insurance Group.
In line with the announcement, AIG also announced that it has entered into a broad memorandum of understanding with Hamilton and Two Sigma, which will in part see AIG acquire Hamilton’s US arm for around $110mn, a sum that is approximately $30mn in excess of estimated book value.
Furthermore, the firm has entered into a strategic reinsurance partnership with Hamilton Re, as well as a deal with Two Sigma Insurance Quantified to provide technology services to AIG's worldwide commercial insurance business.