Robert S. Schimek, CEO of AIG Commercial, today shared with clients and brokers the reorganization of AIG’s Commercial Insurance leadership team, the latest in a line of strategic moves to improve the company’s bottom line and respond to challenges from activist investor Carl Icahn.
In today’s letter to clients and brokers, Schimek assured them that “The steps we are taking will reinforce what you have traditionally valued in AIG: the financial strength to be there for the long term, underwriting and claims expertise, innovative solutions for emerging risks, and multinational capabilities.”
The new leadership team for Commercial Insurance as announced by Schimek is:
- Lex Baugh, a 32-year veteran of AIG, will lead the Liability and Financial lines. Baugh will be responsible for the traditional long-tail lines, such as Primary Casualty, Excess Casualty, Financial Lines, Environmental and Cyber.
- George Stratts will lead Property and Special Risks, which include traditional short-tail lines such as Property, Marine, Aerospace, Energy, Credit Lines, Portfolio Solutions and Catastrophe Modeling. Stratts has 17 years of experience at AIG.
- Jeremy Johnson, with 16 years’ experience at AIG, will lead U.S. Commercial. Johnson will remain president and CEO of Lexington Insurance.
- Anthony Baldwin has been named to head U.K. and AIG Europe Ltd. (AEL) will be led by AEL is the U.K.-based legal entity for AIG’s business in Europe. Baldwin has 20 years of experience at AIG.
- Carol Barton, a relative newcomer with four years’ experience at AIG will head Multinational. Barton’s appointment to the leadership team is described by Schimek as “a testament to our continued focus on our valued and significant multinational client relationships.”
Additional appointments in the C-suite include the following:
- Rick Woollams, Chief Claims Officerfor Commercial
- Madhu Tadikonda, Chief Underwriting Officer
- Cindy Launer, Chief Operating Officer, who will be responsible for Client Risk Services, Marketing, Business Strategy and Innovation, and Commercial Operations. Launer will also have responsibility for Broker and Client Engagement, which will be led by Steve Grabek.
In late October 2015, activist investor Carl Icahn urged AIG to split into three companies, arguing that such a move would be in the best interests of all parties, especially shareholders. Icahn also urged the break-up to help AIG limit regulation and perhaps change its designation as a systemically important financial institution, or SIFI, although several analysts maintain that outcome is hardly guaranteed.
AIG CEO Peter Hancock and his management team have been focused on continuing the reorganization he began upon taking the helm in 2014 and simultaneously dealing with pressure from Icahn. Among the recent changes were the expansion of the board of directors from 14 to 16 and the nomination of Samuel Merksamer, a managing director at Icahn Capital, to the board along with hedge fund manager John Paulson.
A video with more information on AIG’s Commercial strategy can be found at www.aig.com/strategy-update.