(Bloomberg) — American International Group Inc. Chief Executive Officer Peter Hancock hired former colleague Doug Dachille to oversee the insurer’s investment portfolio of more than $350 billion, and agreed to buy his firm.
Dachille, 51, was named chief investment officer and takes over the duties of William Dooley, who is retiring, New York- based AIG said in a statement Tuesday. The insurer will acquire Dachille’s First Principles Capital Management, which oversees about $10 billion.
Dachille helped build the derivatives group at J.P. Morgan & Co., where Hancock also worked, and held positions at the bank including co-treasurer and global head of proprietary trading. Hancock’s hiring of an investments chief is part of a management overhaul he’s undertaken since becoming CEO last year.
The new CIO “has an extensive track record in all aspects of asset management, structured finance and risk management at global companies,” Hancock said in the statement. First Principles’ “customized asset-management services align with AIG’s commitment to providing the highest level of solutions- oriented services to clients.”
Dachille’s firm has about 20 employees and oversees funds for third parties such as banks, pensions, family offices and endowments. Terms of the First Principles deal weren’t disclosed.
AIG adds the operation after it sold asset manager PineBridge Investments to Pacific Century Group in 2010, when the insurer was divesting businesses to help escape a $182.3 billion U.S. government bailout. The company has since repaid the aid.