Bloomberg News

AIG Rehires Zurich’s Hogan as Global Consumer Insurance CEO (2)

August 14, 2013

AIG Rehires Zurich’s Hogan as Global Consumer Insurance CEO

American International Group Inc. is rebuilding outside the U.S. after selling operations in Asia and Europe to help repay a rescue that swelled to $182.3 billion. Photographer: Chris Ratcliffe/Bloomberg

American International Group Inc. (AIG:US) hired Kevin Hogan from Zurich Insurance Group AG (ZURN) to run global consumer insurance and lead growth by selling home, auto and life policies in emerging markets.

Hogan is returning in October to AIG, where he started in 1984 and worked until 2008, the New York-based insurer said today in a statement. He will report to Peter Hancock, CEO of AIG’s property-casualty division. Hogan replaces Jeffrey Hayman, who was hired in January by Maurice “Hank” Greenberg’s Starr International Co.

Hancock and AIG CEO Robert Benmosche are targeting consumers outside the U.S. as the insurer seeks businesses with higher margins. The company is expanding in Turkey and France through a deal with HSBC Holdings Plc and in China in partnership with People’s Insurance Company Group of China Ltd.

“I am very enthusiastic about the growth potential of our market-leading global PC consumer and life businesses, and believe they will prosper under Kevin’s strong leadership,” Benmosche said in the statement.

Hogan held positions for AIG in Chicago, Tokyo, Hong Kong, Beijing and Singapore, according to the statement. He also served as president of the company’s accident-and-health business in New York.

In December 2008, after AIG’s bailout, he joined Zurich to head the life insurance business in North and South America. A graduate of Dartmouth College, Hogan became CEO of Zurich’s global life business in 2010.

Zurich’s Terryn

Kristof Terryn will replace Hogan, according to a separate statement from Zurich, which is based in the Swiss city of the same name. Terryn is currently group head of operations and a member of the insurer’s executive committee.

AIG is rebuilding outside the U.S. after selling operations (AIG:US) in Asia and Europe to help repay a rescue that swelled to $182.3 billion. Benmosche is working to boost the adjusted return on equity to 10 percent by 2015. The operating ROE was 7.2 percent in 2012 and 2.7 percent in 2011.

Hancock demonstrated the importance of consumer operations when he was promoted in 2011 by AIG to run the global property-casualty business. He reorganized the division into two global groups, with John Doyle running commercial operations and Hayman the consumer side. Hancock ran the consumer operation after Hayman left to join Greenberg, the former AIG CEO.

‘Higher Value’

The insurer has also had to fill posts at its commercial-insurance operation after departures of top managers to Warren Buffett’s Berkshire Hathaway Inc. (A:US) Benmosche has said AIG has plenty of talented managers and appointed Robert Schimek to head its America’s property-casualty business in April.

Hogan will also join AIG’s executive group, according to the statement. Benmosche expanded that panel in June with the addition of Doyle and Chief Risk Officer Sid Sankaran.

AIG can cushion the effects of global economic uncertainty and low interest rates by pursuing business in faster growing and more lucrative markets in Asia, the Middle East and Latin America, the insurer said in its annual report.

“Shifting our mix of business to higher value lines and geographies of opportunity will generate business with more favorable underwriting results,” AIG said in the filing.

Consumer sales in the property-casualty business include accident-and-health products, travel coverage, auto and home protection and some life policies outside the U.S.

AIG sold assets including Hong Kong-based insurer AIA Group Ltd. (1299) and American Life Insurance Co., which had operations in more than 50 countries, to help repay its bailout. The U.S. exited its stake in the insurer in December.

To contact the reporters on this story: Zachary Tracer in New York at ztracer1@bloomberg.net; Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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Companies Mentioned

  • AIG
    (American International Group Inc)
    • $54.48 USD
    • -0.59
    • -1.08%
  • A
    (Agilent Technologies Inc)
    • $56.49 USD
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