Surprise, surprise. Peter Zaffino’s successor at the helm of American International Group (AIG) will be Eric Andersen, an insurance industry veteran who spent nearly 30 years at Aon.
The succession plan, carefully thought through by Zaffino, had initially featured another name: John Neal, former CEO of Lloyd’s of London. But AIG’s board learned in November that their pick was being investigated at Lloyd’s for an office romance—and not for the first time.
Neal had previously been caught in a relationship with a subordinate, in 2017, at Australian insurer QBE. This time, he was abruptly dropped by AIG, even before joining the insurance giant.
Andersen, the new choice, seems more appropriate.
“Eric Andersen is a deeply experienced and widely respected leader,” says John Rice, lead independent director at AIG. Andersen, 60 years old, who was most recently strategic adviser to Greg Case, Aon’s CEO, and will take over as AIG’s interim president this month, working alongside Zaffino. Popular as CEO, Zaffino is credited with the successful multiyear turnaround of AIG. He will pass the baton to Andersen in June and move up to become executive chairman.
For investors, the dual leadership configuration reduces execution risk. The outgoing CEO retains an active role in strategy and governance while his successor takes over day-to-day management.
Andersen, a graduate of Colgate University with an MBA from Fordham University, knows the insurance business well. He joined Aon in 1997 via the acquisition of Minet, a London-based company specializing in insurance coverage for accountants and other professionals. He also worked in the UK at insurance brokerage Alexander Howden.
Nevertheless, he will need some time to adjust to his future role. The insurance conglomerate was close to bankruptcy in the wake of the 2008-09 financial crisis. Zaffino, who became CEO in 2021, had to spin off AIG’s life insurance and retirement businesses to strengthen the company.
Andersen’s mission is to prolong AIG’s success. Brokerage analysts at brokerage KBW believe he is the right choice for the role. Andersen, they recently wrote, “has the gravitas and track record to lead AIG.”
