Key Stats for AIG Stock
- Price Change for AIG stock: -7.5%
- $AIG Share Price as of Jan. 6: $78
- 52-Week High: $88
- $AIG Share Price Target: $88
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What Happened?
American International Group (AIG) stock plunged nearly 8% on Tuesday after the insurance giant announced that Chairman and CEO Peter Zaffino plans to step down from his CEO role by mid-year.
The news caught investors off guard, marking another chapter in what has been a turbulent period for the company’s leadership.
Zaffino will transition to Executive Chair after successfully leading AIG’s transformation over the past several years.
Insurance industry veteran Eric Andersen, most recently a strategic advisor and member of Aon’s Executive Committee, will join as President and CEO-elect on February 16, 2026, and is expected to assume the CEO role after June 1, following a transition period.
During Zaffino’s tenure as CEO since March 2021, AIG achieved remarkable results. The company delivered five consecutive years of underwriting profitability from 2021 to 2025, reversing years of substantial underwriting losses.
Under his leadership, AIG returned more than $19 billion to shareholders through stock repurchases and dividends over the past three years while significantly strengthening its balance sheet.
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What the Market Is Telling Us About AIG Stock
The sharp drop in AIG stock signals that investors are worried about the timing and circumstances of this leadership change. Few expected the company to start 2026 with a high-level resignation, especially after recent turmoil surrounding the executive suite.
Just two months ago, in November, AIG abruptly scrapped plans to bring in John Neal as Zaffino’s heir apparent. That reversal came two weeks before Neal was supposed to start, triggered by AIG’s discovery that Neal’s previous employer was investigating an alleged workplace affair.
Then in December, AIG had to publicly deny media reports that rival Chubb was planning a takeover, stating firmly that the company wasn’t for sale.
Now, with Zaffino’s unexpected departure announcement, investors are concerned about stability at the top. While the company characterized this as part of a “comprehensive multi-year succession planning process,” the timing feels sudden, given the recent executive drama.
Andersen brings impressive credentials to the role. During his nearly three decades at Aon, he held senior leadership positions, including President of Aon, where he led programs that grew market value from $35 billion to $85 billion between 2020 and 2025. He’s known for reshaping business portfolios, implementing data and analytics strategies, and delivering operational improvements.
Lead Independent Director John Rice praised Andersen as “a deeply experienced and widely respected leader, known across the insurance industry for his integrity, strategic vision, and proven ability to drive shareholder value.”
However, investors aren’t convinced yet. Zaffino won’t be an easy act to follow. He led AIG through a remarkable turnaround amid significant macroeconomic headwinds, built a strong culture of underwriting excellence, divested non-core businesses, and modernized the company’s technology infrastructure, including the strategic implementation of AI.
For AIG stockholders, the question now is whether Andersen can maintain the momentum Zaffino established.
While his track record at Aon suggests he’s capable, leadership transitions always carry execution risk, especially at a company that’s experienced as much executive upheaval as AIG has in recent months.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
