Why AIG Stock Tumbled by Almost 8% Today
Key Points
The insurer's leader is stepping down.
He will hand over the reins in the coming months.
- 10 stocks we like better than American International Group ›
Investors clearly weren't feeling all that secure about American International Group (NYSE: AIG) stock on Tuesday. After all, they traded out of the big insurer to the point where it closed nearly 8% lower in price. Much of this was due to a major development in the company's C-suite.
C-suite surprise
Before market open that day, AIG announced that its CEO and chairman of the board of directors, Peter Zaffino, is stepping down from the former position. He aims to do this by mid-year; however, the company did not provide a more specific time frame. At that point, Zaffino's goal is to transition to being only the executive chairman of the board.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
He is to be replaced by a veteran insurance industry executive, Aon's Eric Anderson. He will assume the role of CEO-elect on Feb. 16, transitioning to CEO proper at some point after June 1. At that time, he will also be appointed to the board.
AIG quoted its lead independent director, John Rice, as saying of Anderson's stint at Aon that he "reshaped the company's business portfolio, implemented a new data and analytics strategy, and delivered strong operational improvements."
"The board is confident that he is the right executive to be the next CEO of AIG," Rice added.
Meet the new boss
That may be so, but Zaffino's resignation was not expected, and as such, it comes as an unpleasant surprise. He led the company during a period when it achieved five consecutive years of underwriting profitability, following a period of notable losses. Anderson's history suggests he'll be a competent leader, but Zaffino won't be an easy act to follow.
Should you buy stock in American International Group right now?
Before you buy stock in American International Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American International Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $493,290!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,153,214!*
Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 6, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
