Eric Andersen, an insurance industry veteran, will join American International Group as president and chief executive-elect from February 16.

The move follows a decision by Peter Zaffino, the chairman and CEO, to step down as chief executive by midyear and transition to the role of executive chairman, subject to an orderly handover.

Mr Andersen is expected to assume the CEO role and join the board of AIG after June 1.

AIG said that the appointment followed a multiyear succession planning process led by its board of directors.

Mr Zaffino, who has led AIG since March 2021, said the company was now well positioned for a leadership transition after completing a major turnaround. During his tenure, AIG returned to underwriting profitability, strengthened its balance sheet and divested noncore operations.

“I am incredibly proud of the progress we have delivered to make AIG a top industry performer,” Mr Zaffino said. “From this position of strength, I am confident that now is the appropriate time to begin to transition leadership of the company.”

John Rice, lead independent director, credited Mr Zaffino with reshaping AIG’s culture and financial performance, and said his continued involvement as executive chair would support future-focused initiatives, including digital and data strategy.

Mr Andersen joins AIG from Aon, where he most recently served as a strategic adviser to the president and CEO and was a member of the executive committee.

Over nearly three decades at Aon, he held senior roles including president of the group and CEO of Aon Benfield, its reinsurance arm.

Commenting on his appointment, Mr Andersen said AIG was “an iconic company with a strong foundation” and said he looked forward to working with Mr Zaffino, the board and AIG staff during the transition.

AIG maintains a major reinsurance footprint in Bermuda, where it operates through key subsidiaries including American International Reinsurance Co and AIG Life of Bermuda.

The group also utilises Bermudian-based structures such as captives and segregated accounts, including Grand Isle SAC. It acquired Validus in 2018, and has formed strategic partnerships with peers including RenaissanceRe and Convex.