Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) hired four senior executives from American International Group Inc (NYSE:AIG) with experience in insuring large and unusual risks. The executives resigned from their positions in the insurance giant, Thursday.
The four executives who left the insurance giant include Peter Eastwood, chief executive officer of American International Group Inc (NYSE:AIG)’s Americas property casualty operation. Eastwood served AIG since 1991. He became CEO of the insurance giant’s Lexington insurance unit, provider of surplus lines coverage for construction, energy, and other industries in 2008 after its long-time CEO Kevin Kelley stepped down to join Ironshore Inc.
John Doyle, head of global commercial business of American International Group Inc (NYSE:AIG) will take over all the responsibilities of Eastwood in an interim basis until the company finds an executive who will assume the position permanently, according to Matt Gallagher, spokesperson for the insurance giant.
Insiders in the insurance industry cited that Buffett aims to establish an excess-and-surplus unit that will provide insurance coverage not available from companies with licenses in a state.
The three other executives who left American International Group Inc (NYSE:AIG) include David J. Bresnahan, president of Lexington Insurance Co., David Fields, chief reinsurance officer of AIG, and Sanjay Godhwani, president of AIG’s property/casualty group—Latin America and the Caribbean.
In response to the resignations of its senior executives, American International Group (NYSE:AIG) indicated that the company has experienced and talented leaders in the insurance industry who are ready to assume the responsibilities vacated by Eastwood and his colleagues.
The statement reads, “AIG has strong leadership in place. AIG has a seasoned and very deep bench of talented property and casualty executives ready to assume broader responsibilities. We have hired a number of strong industry leaders over the past few years, including in commercial underwriting, specialty and aerospace, and our executives have the hard-earned experience of leading our business through unprecedented times and circumstances. We continue to look to tomorrow and the opportunities ahead for AIG and our customers.”
Meanwhile, early this month, American International Group Inc (NYSE:AIG) announced that two new nominees will stand for election to the board of directors of the company during its upcoming annual shareholders meeting on May 15, 2013. The director nominees were
William G. Jurgensen, former Chief Executive Officer of Nationwide Insurance, and Theresa M. Stone, Former Executive Vice President and Treasurer of the Massachusetts Institute of Technology.
The insurance giant is scheduled to release its first quarter earnings report on Thursday, May 2, 2013.