By Jean Eaglesham and Colin Kellaher
Peter Zaffino is stepping down as chief executive of American International Group after a turbulent period at the insurer that culminated in AIG insisting it wasn't for sale.
The change caps months of C-suite turmoil for AIG, which in November abruptly scrapped plans to bring in another executive, John Neal, as Zaffino's heir-apparent. The reversal, two weeks before Neal was due to start, was triggered by AIG's discovery that Neal's previous employer was investigating an alleged workplace affair.
Last month, AIG denied a media report that rival Chubb was planning a takeover. AIG said it wasn't for sale, and a Chubb spokeswoman said no formal offer had been made.
The 58-year-old Zaffino will hand the reins to longtime Aon executive Eric Andersen and will remain as executive chairman. Andersen, who has spent nearly three decades with Aon, will join the New York insurer as president on Feb. 16 and will assume the CEO post after June 1.
Analysts at JPMorgan said the move was a negative for the stock. "At a minimum, the announcement creates uncertainty, discontinuity, and distraction in management ranks, and we see no reasons how it improves the investment case for AIG shares," they wrote.
AIG shares fell nearly 6% in morning trading Tuesday.
AIG has endured nearly two decades of tumult, including near-bankruptcy in the 2008-09 financial crisis, multiple management changes and selling off crown jewels to repay one of the U.S. government's biggest bailouts.
Zaffino has been credited with turning around the insurance conglomerate, which was still struggling with the aftermath of its 2008 bailout when he joined as global chief operating officer in 2017. He became CEO in 2021.
As CEO, he overhauled AIG -- including hiving off its life and retirement business -- and oversaw a marked increase in profitability. AIG turned a profit from the policies it underwrote for five straight years from 2021 to 2025, reversing years of substantial underwriting losses.
Zaffino "has led AIG through a remarkable turnaround against the backdrop of significant macro socio-economic headwinds," AIG said.
Andersen, the incoming CEO, served as president of Aon from 2020 through 2025 and has acted as a strategic adviser to Greg Case, the professional-services company's CEO.
Write to Jean Eaglesham at Jean.Eaglesham@wsj.com and Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 06, 2026 09:41 ET (14:41 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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