Benzinga | Oct 27, 2020 01:41AM EDT

Why AIG Shares Traded Higher In Monday's After-Hours Session

American International Group Inc (NYSE:AIG) shares traded higher in the after-hours session Monday after the company announced new leadership and the decision to spinoff its life and retirement business.

New Leadership: The AIG Board of Directors named Peter S. Zaffino as CEO, who currently serves as the president of the insurance giant.

Zaffino's term will begin in March 2021, the company said in a statement. He has also been nominated to serve as director immediately.

Brian Duperreault, the incumbent CEO, will become executive chairman, while Douglas M. Steenland has been appointed as a lead independent director, the company said.

Life And Retirement Spin-Offs: The New York-based insurer said in a separate statement Monday that it intended to separate its life and retirement business from the company, which it said would build "value for shareholders."

No timing or terms were announced for the spinoff company to be formed.

Q3 Catastrophe Numbers: AIG announced Q3 2020 catastrophe loss estimates of $790 million, before tax, which include $185 million of losses related to COVID-19.

Non-COVID-19 catastrophe losses of $605 million reflect windstorms and tropical storms in the Americas and Japan, as well as, west coast wildfires, the company said in a statement.

AIG Price Action: AIG shares traded nearly 6.6% higher at $33.33 in the after-hours session on Monday after closing nearly 3.5% lower at $31.26.

Photo courtesy: eflon via Flickr