AIG Retools Structure to ExpandOrganizational Structure -- WSJ
New CEO seeks to make acquisitions his stamp on insurer, without oversight from the government resuming expansion
By Leslie Scism
This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (September 26, 2017).
American International Group Inc. is shuffling its structure and top leadership ranks as the insurance giant looks to begin an expansion that is expected to include acquisitions.
Chief Executive Brian Duperreault is reorganizing the company's business lines internally with two of his recent new hires taking on more responsibility, while one of his predecessor's top lieutenants is leaving.
The moves signal a reversal of efforts by prior CEO Peter Hancock at the insurance conglomerate, as Mr. Duperreault puts his stamp on the company and positions it to start expanding again, after years of shrinkage.
Mr. Duperreault's changes also come on the heels of the company's unsuccessful push last week in Washington, D.C., to get it out from under federal supervision as a "systemically important financial institution." Discussions among regulators are expected to continue about the company.
One of the most important ramifications of a removal of the so-called SIFI label is that it would make it easier for Mr. Duperreault to make acquisitions, without worrying about the need to obtain Federal Reserve approval for sending large amounts of capital out the door.
In the new development, Mr. Duperreault said in a release that AIG no longer would have units focused separately on commercial and consumer segments, but would transition to units that focus on type of insurance.