Insurance giant AIG announced a major restructuring Monday that shuttered its commercial and consumer segments. In a press release, the company said it would transition existing sectors into just three: General Insurance, Life & Retirement and Technology-Enabled Platform.
The change is being touted as a CEO-led overhaul and a major action by Brian Duperreault, who has only been at the helm of the company since May 2017. The appointment of 70-year-old Duperreault was seen as something of a short- to midterm solution for the company when former CEO Peter Hancock announced his departure following the company’s poor quarterly results in the fourth quarter of 2016, reports Business Insider.
In the announcement, AIG said year-end financial reporting would reflect the new structure and it would align incentive and performance management with the changes. But another major change will be the departure of Rob Schimek, CEO of the now-defunct commercial division, at the end of October.
In the statement, Duperreault thanked Schimek for his more than 12 years of service. Schimek joined the company in 2005 as the chief financial officer.
“He has been a valued member of the leadership team, and a great colleague and friend to many. We wish him all the very best with his next endeavor,” said Duperreault in the release.
Schimek was also a front runner to eventually move into the CEO spot at AIG. At the time of Duperreault’s appointment, Business Insider noted that it would “test whether those seen as possible internal candidates for the CEO job will stay on board to help achieve Duperreault’s goals.”
The publication notes that 52-year-old Schimek may have initially been passed over for the CEO position because he lacked Duperreault's “turnaround experience,” despite other successes with the company.