AIG reshuffles leadership to focus on underwriting business

(Reuters) – American International Group (AIG) on Wednesday appointed company insiders David McElroy, Don Bailey, and Jon Hancock to key positions in a bid to strengthen its underwriting performance.

McElroy was appointed as chairman of general insurance, while Bailey and Hancock were named chief executive officers of the North America and international insurance businesses, respectively.

“(The) appointments align with our plans to create a leaner operating model, while remaining extremely focused on advancing our underwriting performance,” AIG chief Peter Zaffino said in a statement.

The New-York based company’s general insurance underwriting income fell 26% in the second quarter, hurt by $250 million in total catastrophe-related charges on the back of U.S. storms and Typhoon Mawar, which hit the Western Pacific Island of Guam in May.

McElroy’s new role will include increasing client growth and cultivating partnerships with distribution partners, while Bailey and Hancock will lead the underwriting, distribution and the business teams.

The appointments will be effective Jan. 1 and all the three executives will report to Zaffino.

(Reporting by Pritam Biswas in Bengaluru; Editing by Maju Samuel)