Key Points:
- CEO Peter Zaffino to retire by mid-2026, with Eric Andersen named CEO-elect.
- AIG shares fell nearly 7% after the leadership transition announcement.
- The company emphasizes strategic continuity with Zaffino staying on as executive chair.
American International Group Inc. (AIG) has announced a significant leadership transition, confirming that Chief Executive Officer Peter Zaffino will retire by mid-2026 after nearly five years at the helm. The company revealed that Eric Andersen, a long-time insurance executive, has been named president and CEO-elect, with plans to formally assume the top role later in the year. Peter Zaffino is expected to move into an executive chair position, providing continuity and strategic oversight during the transition.
The announcement prompted a sharp reaction from investors, with AIG shares falling close to 7% in early trading following the news. The decline marked the company’s steepest single-day drop in several months, reflecting market unease over the timing and limited detail surrounding the leadership change. While AIG emphasized that the transition is planned, the absence of a specific explanation for Zaffino’s early departure raised questions among analysts and shareholders about near-term stability.
Andersen Tapped to Lead Next Phase
Eric Andersen brings nearly three decades of industry experience to AIG, having held senior leadership roles across global insurance and risk advisory operations. Known for overseeing large-scale commercial insurance portfolios and client-focused strategies, Andersen is set to join AIG’s board before formally assuming chief executive responsibilities. His appointment signals a strategic shift toward leveraging deep market relationships and distribution expertise at a time when insurers are navigating evolving risk environments.
Market observers have offered mixed but measured reactions to Andersen’s selection. While his leadership credentials are widely recognized, some analysts note that transitioning from advisory roles to managing a global underwriting organization presents operational challenges. However, expectations remain that Andersen will largely continue AIG’s current strategic direction rather than introduce sweeping structural changes.
Under Peter Zaffino’s leadership, AIG underwent a broad transformation aimed at restoring profitability and reducing volatility. The company exited non-core life insurance businesses, strengthened underwriting discipline, and pursued targeted acquisitions to expand its presence in specialty insurance and reinsurance markets. These efforts helped improve financial performance and significantly boosted shareholder returns over the past several years.
Executive Changes and Strategic Continuity
The leadership announcement comes amid recent executive turbulence within the company. In late 2025, AIG abruptly ended its relationship with a high-profile executive recruit before the individual assumed office, following an internal review. That episode, combined with the current transition, has drawn attention to governance and succession planning within the organization.
Despite these developments, AIG has reiterated its commitment to maintaining strategic continuity. The company remains focused on disciplined growth in property and casualty insurance, capital optimization, and expanding its global footprint in commercial and specialty markets. Peter Zaffino’s continued involvement as executive chair is expected to provide stability while Andersen gradually assumes full operational control.
As AIG enters this next phase, investors and industry observers will closely monitor how the leadership change impacts execution, culture, and long-term performance in an increasingly competitive insurance landscape.
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