AIG’s Hancock steps down: Donald Trump’s regulatory adviser Carl Icahn praises board’s “transition plan”

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AIG's global chief Peter Hancock has announced he will step down after just over two years in the role, with a ally of US President Donald Trump praising the move.

The insurance giant announced the president and chief executive would be leaving as part of a wider "transition plan". Hancock will remain in place until AIG has found his replacement, he said:

I believe this is the right decision to make for the company and all its stakeholders.

Read more: AIG's shares fall as losses disappoint investors

The news comes as Hancock is half-way through a two-year turnaround plan he masterminded in January 2016.

Douglas Steenland, AIG's chairman said: "The board believes strongly that this is the right plan and remains committed to the financial targets and objectives we’ve announced."

Ichan rift

Hancock's turnaround plan last year came as billionaire activist investor Carl Icahn called for AIG to be split. The chief exec repeatedly clashed with Icahn who was pushing for the insurance firm to split into three.

Read more: Yes, Icahn: Donald Trump appoints Carl Icahn as special adviser

"There is only one sensible path for AIG to follow: become a smaller, simpler company," Icahn had said in an open letter.

Meanwhile today, Icahn, who was appointed as special adviser to President Donald Trump on regulatory reform, put his weight behind the decision of the board to accept Hancock's resignation.

Hancock added in today's statement: “I’m extremely proud of our organisation and the steps we have taken to position the company for success long into the future."