Leading XL Capital executive Jerry M. de St. Paer retires from the company this coming Monday but is to remain within the business world by joining American International Group (AIG) next month as a senior vice-president.

The news that the 65-year-old is to take a high-level role with AIG was announced late yesterday.

Since February 2001, Mr. de St. Paer has been XL’s chief financial officer. Last November he announced his intention to retire from the company on March 5.

As an interim replacement chartered accountant and XL chief of staff Fiona Luck will assume the role until a permanent replacement chief financial officer is appointed.

An agreement was reached between XL and Mr. de St. Paer last week in which his departure from the company will be considered a retirement under the company’s employee benefit and long-term incentive plan.

XL has also agreed to waive an employment agreement relating to non-competition and non-solicitation of customers.

When he assumes his new role with AIG in early April, Mr. de St. Paer will report to AIG executive vice-president and CFO Steven Bensinger and other senior members of financial management and be involved in a number of corporate initiatives, representing AIG in the development of international insurance accounting and solvency standards.

Prior to joining XL in 2001 he was a managing director of Hudson International insurance investment banking firm. He was also a managing director in the insurance division of JP Morgan.

He has also worked for The Equitable (now AXA Financial Advisors) and Exxon Corporation.

His interim replacement at XL, Ms Luck, has 24 years’ experience in the insurance industry and will continue in her role as chief of staff and as a member of the company’s office of the CEO.