NEW YORK—American International Group Inc. property/casualty unit Chartis Inc. has named Thomas Scherer senior vp and general counsel, the company said Tuesday.

In addition, AIG has reportedly asked Thomas Russo, the former general counsel at Lehman Brothers Inc., to be its next general counsel, according to the Wall Street Journal, citing people familiar with the situation.

Mr. Scherer, who was previously special litigation counsel and chief compliance officer at Swiss Reinsurance Co., will be responsible for New York-based Chartis’ worldwide legal operations, effective immediately.

The executive-level appointment fills a new position at Chartis, formerly AIU Holdings, which was formed last year through the combination of AIG’s domestic and foreign property/casualty insurance businesses.

Mr. Scherer also had served as Swiss Re’s group deputy general counsel and as chief operating officer and general counsel for the reinsurer’s financial markets division. He will be based in New York and will report directly to Chartis President and CEO Kristian P. Moor and to AIG’s general counsel, who will be named later, a Chartis spokeswoman said.

Late last month, Anastasia Kelly, AIG’s general counsel and vice chairman for legal, human resources and corporate affairs, resigned due to federal salary caps imposed on executives of companies that took government bailout funds.

According to the Journal, AIG has given Mr. Russo a written offer and is discussing his proposed pay package with the office of U.S. pay czar Kenneth Feinberg. Mr. Russo was a vice chairman of Lehman Brothers Inc. and the chief legal officer of Lehman Brothers Holdings for more than 15 years. He serves as senior counsel in the New York office of Patton Boggs L.L.P., according to the firm’s Web site.

AIG did not immediately respond to a request for comment.