(Bloomberg) -- American International Group Inc. is weighing a plan to hire Brian Duperreault as the company’s seventh chief executive officer since 2005, according to people familiar with the board’s deliberations.
Other candidates are still being considered as the board seeks a replacement for outgoing CEO Peter Hancock, said one of the people, who asked not to be identified discussing private deliberations.
Duperreault, 69, is a former deputy to longtime AIG leader Maurice “Hank” Greenberg and went on to lead one of the company’s biggest rivals, Ace Ltd. He later became CEO of the biggest insurance broker, Marsh & McLennan Cos., and then Hamilton Insurance Group, a Bermuda-based carrier backed by principals of hedge fund firm Two Sigma Investments. Representatives for AIG and Hamilton said the companies don’t comment on speculation. Two Sigma declined to comment.
AIG extended gains in New York trading, climbing 1.4 percent to $59.79 at 3:45 p.m.
‘Among the best’
Duperreault is “among the best possible candidates to become AIG’s next CEO,” Barclays Plc analysts led by Jay Gelb wrote in a note to investors after Bloomberg reported on the board’s deliberations. “Duperreault would be able to form a workable strategy for AIG and also attract top industry talent.”
Hamilton has already been working with AIG to improve the use of analytics in underwriting. The two insurers partnered last year with Two Sigma to form a venture focusing on the $80 billion market for small- and medium-sized businesses. And in 2016 he hired Seraina Macia, a former AIG executive, to run Hamilton’s U.S. operation. AIG has also weighed making an offer to purchase Hamilton, one of the people said.
Hancock lost support of investors
AIG is seeking a replacement for Hancock, who announced March 9 that he was stepping down after losing the support of investors including activist billionaire Carl Icahn. The company has become increasingly reliant on commercial property-and-casualty insurance after divesting life operations in many nations and exiting businesses like plane leasing. Hancock, who has a background in banking, was stung by higher-than-expected claims costs on policies covering against environment liabilities and worker injuries.
The new CEO will have to restore the confidence of Wall Street, which has been frustrated by four losses in six quarters. The job will also involve efforts to retain commercial clients after New York-based AIG endured the departure of many top executives and a downgrade by S&P Global Ratings.