Industry veteran Brian Duperreault has left island-based Hamilton Insurance Group to become head of American insurance giant AIG.

Douglas Steenland, chairman of AIG, said: “Brian is uniquely qualified to lead AIG at this important time.

“He is a hands-on leader who has consistently delivered strong bottom-line results.”

Mr Duperreault’s successor as chairman of Hamilton, William Freda, said: “It is with regret that we have accepted Brian’s resignation from Hamilton.

“He is an industry icon with a well-deserved reputation for visionary leadership. We have had the privilege of experiencing this first-hand at Hamilton.”

Mr Duperreault, 70, is a former lieutenant and protégé of ex-AIG CEO Maurice “Hank” Greenberg and is recognised for his experience in turning around struggling companies.

He will replace Peter Hancock as AIG CEO, who was almost three quarters through a plan designed to turn the ailing giant around after a series of poor results.

Mr Duperreault moved up through the ranks of AIG early in his career, leaving in 1994 to build Ace, now Chubb, from a small operator into a global operation.

Mr Duperreault, who was also CEO of Hamilton, will be replaced in that role by David Brown, the former CEO of Flagstone Re.

Mr Freda said: “We have in David an experienced industry CEO who has been with the company since inception. He is an ideal resource to lead Hamilton through this transition.”

He added: “With a superlative management team, and a board of directors representing a cross section of disciplines from the insurance, finance and technology industries, we are well prepared to continue to execute our mission of writing the future of risk.

“In addition, our relationship with Two Sigma, our technology and investment partner, has been an extremely productive one since Hamilton’s launch at the end of 2013.

“Our experience with Attune, the technology-enabled company established with Two Sigma and AIG, has demonstrated the huge potential in applying data science and analytics to transform the underwriting process.

“We are all excited about the potential for ongoing growth and development at Hamilton.”

Mr Duperreault, who founded insurance and reinsurance company Hamilton four years ago after a long career in the sector, had been touted as the new CEO of AIG for some time.

AIG’s shares climbed 1.4 per cent yesterday to $61.82 after the news was announced.

Mr Duperreault took charge at Marsh & McLennan Companies in 2008 and launched a successful turnaround after the firm had been hit by reputational problems and lost business after then-New York Attorney General Eliot Spitzer alleged it had rigged bids for insurance contracts.

Marsh paid an $850 million civil penalty in 2005 to settle the claims.

Mr Freda worked for Deloitte on a wide range of multinational engagements for 40 years through 2014.

Mr Brown was CEO of Flagstone Reinsurance Holdings from its foundation in October 2005 until November 2012. He previously served as chief executive of Centre Solutions from 1994 until 1997.

Before joining Centre Solutions, he was a partner with Ernst & Young. He has been chairman of the board at the Bermuda Stock Exchange since 2000.