Home » Money

AIG CEO Peter Hancock To Depart Amid Mounting Losses

10 March, 2017, 00:17 | Author: Paula Vaughn
  • AIG President and CEO Peter Hancock is interviewed on the floor of the New York Stock Exchange. Weeks after reporting a massive loss at AIG the person selected to turn things around at the insurance

The CEO's two-year turnaround plan appears to be faltering after AIG reported a unexpectedly large quarterly loss for the fourth quarter of last year, mainly due to a $5.6 billion reserve charge to cover possible future claims.

AIG shares climbed 1.6 percent in early NY trading as investors reacted positively to the resignation of CEO Peter Hancock.

"I believe this is the right decision to make for the company and all its stakeholders", Hancock said of his resignation.

In a statement on Thursday, the New York-based company said that Hancock had informed the board of his intention to resign.

Indian doctors confirm 'world's heaviest woman' has lost 100kg
In order to transport her to Mumbai, the walls of her room were knocked down and she had to be lifted out of her bed via crane. They are also awaiting Ms Ahmed's genetic test results to understand if a genetic disorder might be responsible for obesity.

"We fully support the actions taken today by the board", said Icahn, who appointed a designee to serve as director in his stead. Activist investors Carl Icahn and John Paulson, who secured seats on the board previous year, have also piled pressure on AIG's executives. "Of course, there aren't too many candidates with the skills needed to turn around this troubled global company, but several successful turn-arounds" have occurred in the industry, Shields wrote in a note. But even so, its shares are trading at 83 percent of book value and the company's net loss widened to $3.04 billion in the fourth quarter from $1.84 billion a year earlier.

Hancock is AIG's fifth chief executive since Maurice "Hank" Greenberg was ousted in 2005. AIG is one of the few insurers labeled by the US government as being a significantly important financial institution (SIFI), which makes it subject to tougher capital requirements and supervision.

In January, AIG agreed to a reinsurance deal with National Indemnity, a subsidiary of investor Warren Buffett's Berkshire Hathaway, for $9.8 billion. Before that, he was the CEO of AIG Property Casualty.

"Peter tackled the company's most complex issues, including the repayment of AIG's obligations to the US Treasury in full and with a profit, and is leaving AIG as a strong, focused and profitable insurance company", chairman Doug Steenland said in a statement.

Recommended:



Popular

Grayson Allen gets technical foul after angrily slamming down ball
Which teams at the top will go far in the tournament - and which teams at the bottom can fight their way into the Big Dance? North Carolina's Roy Williams is a master at this, but just about every ACC coach likes trying it out for size.

DeSean Jackson to Patriots?
Sure, Jackson hasn't killed it on the stat sheet as he turns 30 years old but would create a great 1-2 punch for defenses. After all, he was targeted an insane 176 times last season and caught 96 passes for 1,321 yards and 12 touchdowns.

ISIS Attackers Dressed As Doctors Kill Dozens at Afghan Military Hospital
ISIL claimed the attack in a statement carried by Aamaq, its affiliated news agency, and through a verified telegram account. They say the arson attack came after a riot and attempt to escape from the overcrowded government-run centre.

Narendra Modi; Most Talked About Politician On Facebook
Desperate to retain his chair, Akhilesh Yadav addressed a whopping 221 rallies in 36 days. He also, once again, accused BSP chief Mayawati of propagating corruption.

Nintendo Switch day one update is now live
The Nintendo Switch was released recently, on March 3, 2017 , and many players are now eagerly waiting to get their hands on it. Word from decal maker dbrand is that both the console and controllers are incompatible with the adhesives used.