American International Group Inc. (AIG) announced the reorganization of its Chartis unit, creating two major global groups and putting in a key risk-management lieutenant to lead the property-casualty business.
Peter D. Hancock was named chief executive of the operation.He joined the company early last year as an executive vice president overseeing finance, risk and investments. Under the new structure, Chartis will now consist of two major global groups - commercial and consumer - with the supporting claims, actuarial, and underwriting disciplines integrated into these two major business operations. John Q. Doyle, previously chief executive officer of Chartis U.S., will run the global commercial business, and Jeffrey L. Hayman, currently Chartis' chief administrative officer, will head the global consumer business. John Doyle and Jeff Hayman will report to Peter Hancock.
Additionally Nicholas C. Walsh, previously president and chief executive officer of Chartis International, will head global distribution, also reporting to Peter Hancock.
The move underlines an increased focus on risk management and monitoring after weakness in those areas played a key role in AIG's near collapse in 2008. The insurer, the recipient of a government bailout, has since experienced stabilization in its continuing businesses.
Before joining AIG, Hancock spent much of his career as a risk manager and top finance officer at J.P. Morgan Chase & Co. (JPM) and a finance company he co-founded in 2000.
The move follows Standard & Poor's Ratings Services cutting its credit rating on the business last month, saying its fourth-quarter performance was worse than expected. AIG had said Chartis had an underwriting loss for the period, even when a previously announced charge to bolster its reserves was excluded.