Robert S. Schimek, CEO of AIG Commercial, today shared withclients and brokers the reorganization of AIG’s CommercialInsurance leadership team, the latest in a line of strategic movesto improve the company’s bottom line and respond to challenges fromactivist investor Carl Icahn.

In today’s letter to clients and brokers, Schimek assured themthat “The steps we are taking will reinforce what you havetraditionally valued in AIG: the financial strength to be there forthe long term, underwriting and claims expertise, innovativesolutions for emerging risks, and multinational capabilities.”

The new leadership team for Commercial Insurance as announced bySchimek is:

• Lex Baugh, a 32-year veteran of AIG, will leadthe Liability and Financial lines. Baugh will be responsible forthe traditional long-tail lines, such as Primary Casualty, ExcessCasualty, Financial Lines, Environmental and Cyber.
• George Stratts will lead Property and SpecialRisks, which include traditional short-tail lines such as Property,Marine, Aerospace, Energy, Credit Lines, Portfolio Solutions andCatastrophe Modeling. Stratts has 17 years of experience atAIG.
• Jeremy Johnson, with 16 years’ experience atAIG, will lead U.S. Commercial. Johnson will remain president andCEO 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.-basedlegal entity for AIG’s business in Europe. Baldwin has 20 years ofexperience at AIG.
• Carol Barton, a relative newcomer with fouryears’ experience at AIG will head Multinational. Barton’sappointment to the leadership team is described by Schimek as “atestament to our continued focus on our valued and significantmultinational client relationships.”

Additional appointments in the C-suite include thefollowing:

• Rick Woollams, Chief Claims OfficerforCommercial
• Madhu Tadikonda, Chief UnderwritingOfficer
• Cindy Launer, Chief Operating Officer, whowill be responsible for Client Risk Services, Marketing, BusinessStrategy and Innovation, and Commercial Operations. Launer willalso have responsibility for Broker and Client Engagement, whichwill be led by Steve Grabek.

In late October 2015, activist investor Carl Icahn urged AIG tosplit into three companies, arguing that such a move would be inthe best interests of all parties, especially shareholders. Icahnalso urged the break-up to help AIG limit regulation and perhapschange its designation as a systemically important financialinstitution, or SIFI, although several analysts maintain thatoutcome is hardly guaranteed.

AIG CEO Peter Hancock and his management team have been focusedon continuing the reorganization he began upon taking the helm in2014 and simultaneously dealing with pressure from Icahn. Among therecent changes were the expansion of the board of directors from 14to 16 and the nomination of Samuel Merksamer, a managingdirector at Icahn Capital, to the board along with hedge fundmanager John Paulson.

A video with more information on AIG’s Commercial strategy canbe found at www.aig.com/strategy-update.

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