AIG revamps property/casualty insurance unit Chartis

NEW YORK—American International Group Inc. on Thursday announced that it was reorganizing its Chartis Inc. global property/casualty insurance unit and appointing a new CEO to lead the unit.

Peter D. Hancock, currently AIG’s executive vp-finance, risk and investments, has been named CEO of Chartis, succeeding Kristian P. Moor, who was named vice chairman and will report to Mr. Hancock.

The reorganized 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—rather than international and domestic.

John Q. Doyle, previously CEO of Chartis U.S., will run the global commercial business. Jeffrey L. Hayman, currently Chartis’ chief administrative officer, will lead the global consumer business. Mr. Doyle and Mr. Hayman will be responsible for their groups’ overall underwriting and business results and will report to Mr. Hancock.

In an interview with Business Insurance, AIG President and CEO Robert H. Benmosche said that from a risk manager’s perspective, the change will make dealing with Chartis on an international basis easier.

“Our U.S. product people and underwriters generally got to the border and had to stop and hand it off to somebody else,” he said. “This eliminates any regional or country boundary. It gives people on the commercial side the ability to go where they need to go and integrate with people on a more global footprint.”

Mr. Hancock said during the interview said that the reorganization will allow Chartis to “really serve our clients seamlessly around the world.” International and domestic divisions had never been fully integrated, he said. The change will “allow us to deliver better products in a more effective way, especially as our clients demand top quality and service wherever they operate around the world.”

Earlier this month, AIG denied Mr. Moor a full incentive bonus for 2010 because of “underachievement.” Mr. Hancock, who joined AIG in February 2010, received 120% of his 2010 bonus.