CEO Peter Hancock's resignation is unlikely to lead to any radical strategic shifts for this no-moat firm.
Brett Horn, CFA
09:19 AM | Email Article
American International Group
announced that CEO Peter Hancock will resign, although he will stay in place until a successor can be named. We have mixed feelings about this development. While Hancock has come in for much criticism, we believe his strategy was largely sound and focused on the right areas, although the recent reserve development hit suggests execution may have been lacking in some areas. The company’s board reaffirmed its commitment to previous financial targets as part of the announcement, and at this point, we don’t believe Hancock’s departure will lead to any radical strategic shifts. We will maintain our $74 fair value estimate and no-moat rating.
Brett Horn, CFA, is a senior equity analyst for Morningstar.
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