AIG CEO Peter Zaffino to step aside by mid-2026; succession plan revealed

American International Group announced Tuesday that Chairman and CEO Peter Zaffino will transition to executive chairman of the board by the middle of 2026.

Insurance industry veteran Eric Andersen will take over as the new president and CEO-elect of AIG, effective Feb. 16. Andersen will report to Zaffino and is expected to assume the role of CEO and join the board of directors after June 1, following an "orderly transition period."

“I am incredibly proud of our colleagues and the extraordinary progress we have delivered during my tenure to make AIG a top industry performer," Zaffino said in a news release. "With significant support from the AIG Board of Directors, we have returned AIG to vastly improved profitability, significantly strengthened our balance sheet, and built tremendous financial flexibility. These efforts have resulted in exceptional strategic, operational and financial performance, underpinned by our disciplined culture of underwriting excellence. From this position of strength, I am confident that now is the appropriate time to begin to transition leadership of the company.

"We could not have chosen a better person than Eric Andersen to steward the company’s next chapter. Eric is an incredibly accomplished and widely respected insurance executive, and we have worked together closely during my tenure at AIG. Eric’s deep understanding of our company and our industry ideally positions him to become AIG’s next CEO as the company continues to drive long-term profitable growth and value for all our stakeholders. I look forward to welcoming Eric to AIG and continuing to work with the Board of Directors.”

Zaffino succeeded Brian Duperreault as CEO of AIG, with the transition effective March 1, 2021, and later took over as chairman of the board from Duperreault in January 2022. Duperreault brought Zaffino to AIG in 2017 to help with the company's turnaround, and Zaffino rose through the ranks to lead the insurer.

Through disciplined underwriting, AIG reversed years of substantial underwriting losses and delivered five consecutive years of underwriting profitability from 2021 to 2025, "returning the company to market leadership and significantly improved financial strength," the release said.

Under Zaffino, AIG improved underwriting, divested non-core businesses, invested in future-focused enterprise initiatives and modernized its end-to-end operations and technology infrastructure, including the strategic implementation of GenAI to provide better insight and enable growth, the release said.

Zaffino oversaw the split of AIG's life and retirement segment, which became Corebridge Financial, a standalone company. The company returned more than $19 billion in stock repurchases and dividends to shareholders during the past three years and continues to deliver strong economic performance.

Bungled hire

AIG stumbled with the July 2025 hire of John Neal, former Lloyd's of London chief, as president to oversee global insurance operations. Neal was to take over Dec. 1, but AIG abruptly scuttled the hire in November “due to personal circumstances.” AIG announced it would pay Neal $2.7 million in “foregone incentives at his former employer,” according to an SEC filing.

John Rice, lead independent director, said, “On behalf of the Board of Directors, I want to express our deepest gratitude to Peter for his extraordinary leadership and unwavering commitment to AIG. Peter’s vision, tireless dedication and laser-focused execution have fundamentally reshaped AIG, restoring its reputation as a global leader and delivering outstanding value for clients, colleagues, and shareholders. As we onboard Eric, we are grateful to benefit from Peter’s continued leadership as CEO, and then as Executive Chair, where he will continue to drive AIG’s future-focused digital and data initiatives and strategic relationships.”

Andersen joins AIG from Aon, where he most recently was a member of the Aon Executive Committee and served as a strategic advisor to the company’s president and CEO. Over nearly three decades with Aon, he held senior leadership roles, including president of Aon, CEO of Aon Benfield, the world’s leading reinsurance intermediary, and CEO of Aon Risk Solutions Americas, with prior leadership positions spanning global account management and financial services.

During his time as president of Aon from 2020 through 2025, Mr. Andersen led global programs that achieved gains in operational efficiency, improved performance for clients and the firm, increased shareholder returns and grew market value from $35 billion to $85 billion.

“AIG is an iconic company with a strong foundation and strategically well-positioned for the future," Anderson said in a statement. "I look forward to partnering with Peter, the Board, and AIG’s talented colleagues around the world to build on the momentum that has been established and to deliver for our clients, partners, and shareholders.”

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.