AIG Names Dachille to manage $350 billion, will acquire his firm

Bond portfolio

AIG’s available-for-sale bond portfolio was valued at about $260 billion as of March 31, with more than half that total in corporate debt and $37.7 billion in residential mortgage-backed securities. The company also makes loans tied to commercial real estate and helped start a venture last year to provide funding to medium-sized companies.

Hancock sought a new head of investments as Dooley prepared for his retirement after more than three decades with the company. Brian Schreiber, who was a top deputy to Dooley and oversaw the portion of the portfolio including holdings such as real estate, private equity and hedge funds, was named in May as chief strategy officer. That role includes acquisitions and divestitures.

The AIG chief also created new positions, hiring Philip Fasano as chief information officer and Michael Brady as chief technology officer. Both previously were executives at Kaiser Permanente, the nonprofit health insurer and hospital operator.

Insurers hold bonds to back obligations to policyholders and generate profits for shareholders. Many of the industry’s largest companies, including MetLife Inc. and New York Life Insurance Co., have also been pushing into third-party asset management. Running funds for clients can increase fee income while putting less stress on insurers’ balance sheets than investing their own funds.

Dachille will give up the CEO role at First Principles. That post will be taken by Richard F. Dolan, who is chief financial officer, and will report to Dachille. Both are listed as co-founders on the firm’s website.