AIG Stock Plummets on CEO Transition as Trading Volume Dives to 186th in Rankings

Market Snapshot

, 2026, marking a continuation of the stock’s pre-market decline, which had dropped nearly 5% following the announcement of CEO Peter Zaffino’s impending retirement. , , placing AIG 186th in trading volume among listed stocks. The drop in volume and price reflects investor uncertainty ahead of the leadership transition, with Zaffino stepping down as CEO by midyear and transitioning to the role of executive chair.

Key Drivers

The announcement of AIG’s leadership transition triggered an immediate market reaction, with shares falling sharply in pre-market trading. Peter Zaffino, who has been credited with steering AIG through a multi-year turnaround, will step down as CEO on June 1, 2026, and assume the role of executive chair. Zaffino’s tenure, marked by the divestiture of non-core assets, integration of generative AI into operations, and five consecutive years of underwriting profitability (2021–2025), . However, , signaling investor caution about the stability of the company’s momentum under new leadership.

The appointment of Eric Andersen, a 30-year insurance industry veteran and former Aon president, as CEO-elect, effective February 16, 2026, has introduced both optimism and scrutiny. , as well as implementing operational efficiencies and modernization initiatives. AIG’s board highlighted Andersen’s experience in driving shareholder value and his strategic vision, but the abrupt departure of a previously announced successor—John Neal, who withdrew due to personal circumstances—adds uncertainty about continuity. Zaffino’s transition to executive chair, while maintaining oversight, may also raise questions about the clarity of the leadership handover.

The broader market context underscores AIG’s vulnerability to leadership changes. The insurer has faced years of underwriting losses following its , and Zaffino’s efforts to restore profitability have been pivotal. , . Andersen’s ability to maintain AIG’s underwriting rigor while scaling its technology investments will be critical in preserving investor confidence.

The mixed sentiment is reflected in AIG’s valuation metrics. , the stock’s decline suggests skepticism about its ability to sustain growth under new leadership. Institutional ownership remains strong, , . Analysts will closely monitor Andersen’s early decisions, particularly his approach to balancing cost management with innovation in a competitive insurance landscape.

In summary, AIG’s stock performance is deeply tied to the leadership transition, with Zaffino’s legacy and Andersen’s proven capabilities as key focal points. While the company’s turnaround achievements provide a strong foundation, the market’s reaction underscores the importance of smooth succession and continued execution. The coming months will test Andersen’s ability to build on Zaffino’s reforms while addressing AIG’s structural challenges in a volatile economic environment.