AIG Searches For New CIO To Manage A $350 Billion Portfolio

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American International Group is searching for a new chief investment officer to manage its portfolio worth more than $350 billion, according to Bloomberg based on information from a person familiar with the situation.

The new CIO will assume the responsibilities of William Dooley, whose retirement is approaching. Dooley is the Executive Vice President of Investments at AIG. He is currently in charge of the overall asset management of the insurance giant. He has been working for AIG since 1978.

The source requested anonymity citing the reason that AIG is privately searching an executive to replace Dooley.

AIG needs a very strategic manager

In an interview with Bloomberg, Josh Stirling, an analyst at Sanford C. Bernstein & Co. noted that AIG “has simplified itself dramatically,” but it remains a “very large, complicated institution” with a “fair amount of exotic securities.”

Stirling added that AIG needs a good manager who is very strategic and expert in a lot of asset of asset classes.

Monica Machon served as chief investment officer of AIG until 2013. AIG appointed Brian Schreiber and Geoff Cornell as deputy CIOs when Machon became the Treasurer of the company. Schreiber and Cornell worked under Dooley.

Cornell manages corporate and municipal securities. Schreiber is AIG’s holdings in real estate, private equity and hedge funds. Last year, he helped in setting up a commercial lending venture co-founded by AIG and Oak Hill Capital Management.

Last May, the insurance giant appointed Schreiber as chief strategy officer to supervise its acquisitions and divestitures.

AIG management changes

AIG CEO Peter Hancock had been reshuffling the company’s management team since September last year when he assumed his position. He replaced Robert Besmoche.

Hancock restructured AIG into two main divisions—Commercial Insurance and Consume Insurance— to move the insurance giant towards its recovery from the government bailout. John Doyle oversees the commercial insurance division while Kevin Hogan supervises the consumer insurance unit.

Hancock also hired executives to assume the role of chief information officer and chief technology officer. He also added new positions in the company.
AIG spokesman Jon Diat declined to comment regarding the report that the company is seeking a new CIO.

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