On Feb. 19,
AIG Commercial CEO Robert S. Schimek announced to clients and brokers through a letter that
AIG’s Commercial Insurance leadership team had been reorganized. The move is a response to major shareholder and activist investor Carl Icahn’s proposal to streamline
AIG into a smaller company.
“The steps we are taking will reinforce what you have traditionally valued in AIG: the financial strength to be there for the long term, underwriting and claims expertise, innovative solutions for emerging risks, and multinational capabilities,” Schimek stated in the letter.
According to Schimek, the new leadership team for Commercial Insurance would be composed of Lex Baugh as leader of the Liability and Financial lines, George Stratts for Property and Special Risks, Jeremy Johnson for U.S. Commercial, Anthony Baldwin for U.K. and AIG Europe Ltd., and Carol Barton for Multinational.
Other senior executives were also appointed. Rick Woollams was named Chief Claims Officer for Commercial, Madhu Tadikonda was selected to be the company’s Chief Underwriting Officer, and Cindy Launer was promoted to Chief Operating Officer.
Icahn urged AIG back in October 2015 to split into three companies, asserting that it would benefit everyone involved, particularly shareholders. He also reasoned that the break-up would help AIG limit regulation.
Since taking the position of CEO in 2014, Peter Hancock and his management team have been reorganizing AIG as a response to Icahn’s challenge.
