American International Group executive chairman Peter Zaffino is stepping down from the insurer's board and will join Palantir Technologies as global head of financial services next year. AIG has named John Rice as chair. The appointment gives Palantir a veteran insurance executive as it expands beyond government work.
AIG shares closed at $75.88 a day before the insurer disclosed that executive chairman Peter Zaffino is departing the board to take charge of financial services at Palantir Technologies.
Zaffino will join the data-analytics company as global head of financial services next year, according to the announcement. AIG has named John Rice as chair to succeed him, the insurer said.
Zaffino, who led AIG as chief executive before taking the executive chairman role, previously ran Marsh LLC and Guy Carpenter under Marsh & McLennan and earlier worked at GE Capital, according to his company profile. AIG, a property-and-casualty insurer with about 22,100 employees, generates roughly 47 percent of revenue in North America.
The departure removes a veteran insurance executive from AIG's board as the company steers its commercial-lines strategy. For Palantir, the hire deepens a push into financial services that has extended beyond its core government-contract business.
AIG shares trade about 17 percent below the average analyst target of $88.50, with 22 analysts rating the stock outperform on average, according to MarketScreener data. Jefferies carries a buy rating with a $101 target, while Keefe Bruyette & Woods rates the stock outperform at $96.
The move hands Palantir a leader with ties across insurance and reinsurance, a segment where the company has sought commercial growth. Investors will watch whether AIG announces further board changes and how Palantir's financial-services unit performs in coming quarters.
This article is for informational purposes only and does not constitute investment advice.
