On January 6, AIG announced that Peter Zaffino will step down as CEO by mid-year to focus on his role as executive chairman. The insurance giant provided no precise date for his transition, creating uncertainty around leadership continuity. Eric Anderson, a veteran executive from Aon, will become CEO-elect on February 16 and assume full CEO responsibilities after June 1, at which point he will also join AIG’s board of directors.

In response to the leadership shake-up, AIG shares plunged almost 8% in Tuesday trading, with approximately 13 million shares changing hands—three times the three-month daily average of 4.4 million. The sell-off erased nearly $4 billion in market capitalization, highlighting investor concerns over potential disruptions to strategic initiatives and operational momentum.

Under Zaffino’s tenure, AIG achieved five straight years of underwriting profitability following a prolonged period of losses. The insurer’s combined ratio improved from the mid-90s to the low 80s, driven by disciplined underwriting practices and selective market withdrawal. These results helped stabilize the company’s financial metrics and supported a dividend yield of 2.07%.

Eric Anderson is credited with overhauling Aon’s business portfolio, launching an advanced data and analytics platform that boosted policy retention rates by 12%, and delivering double-digit operating margin gains. AIG’s lead independent director, John Rice, emphasized that Anderson’s strategic vision and performance track record make him well-suited to lead the company through evolving interest-rate and regulatory environments.