American International Group said Peter Zaffino plans to retire as chief executive officer by midyear, closing a five-year stretch marked by stronger returns and, lately, visible management tension. Aon executive Eric Andersen will step in as his successor.
Andersen, who most recently sat on Aon’s executive committee, joins AIG as president and CEO-elect on Feb. 16, the insurer said.
He takes full control on June 1, joins the board, and Zaffino shifts into the role of executive chair, according to Beinsure.
Mr. 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, Chief Executive Officer 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 bn to $85 bn.
Mr. Zaffino said, “I am incredibly proud of our colleagues and the extraordinary progress we have delivered during my tenure to make AIG a top industry performer. 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.”
John Rice, AIG’s lead independent director, framed the transition as a handoff rather than a break. He said the company will continue to rely on Zaffino’s leadership during the onboarding phase and later on his oversight of digital, data, and strategic partnerships. The statement left gaps, though. It didn’t explain why Zaffino chose to step aside now.
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
John Rice, AIG’s lead independent director
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.”
That silence isn’t helping sentiment. Jimmy Bhullar of JPMorgan Chase & Co. said the lack of clarity could weigh on investor confidence.
According to his note, the change injects uncertainty and distraction into senior management, without offering a clear upside for the stock. Still, he doesn’t expect sharp shifts in strategy.
Andersen spent nearly 30 years at Aon, holding senior posts that included president, CEO of Aon Benfield, and CEO of Aon Risk Solutions Americas. Analysts see relevance, but also friction.
Evercore ISI wrote that Andersen looks like a solid fit, though AIG’s scale and complexity exceed what he handled in brokerage. A learning curve, unavoidable.
Zaffino took the helm in 2021 and pushed hard on underwriting discipline. Losses that once ran into the billions stopped piling up. During his tenure, AIG shares climbed 92%, outperforming a basket of insurance peers, according to Beinsure analysts.
He also reshaped the company’s footprint. Zaffino exited life insurance through the spin-off of Corebridge Financial, tightened operations, and pursued targeted investments. Those included minority stakes in Convex Group and Onex Corp., deals that together topped $2.7 bn.
In March, he rolled out a three-year strategy tied directly to profitability metrics. That plan now lands on Andersen’s desk, mostly intact, at least for now.
The leadership reset follows months of turbulence at the top. Last year, AIG cut ties with former Lloyd’s of London CEO John Neal before his planned start as president.
His exit came after Lloyd’s disclosed an investigation into alleged misconduct involving an employee. The episode lingered. It still does.
