American International Group said Thursday that Peter D. Hancock, president and CEO, has informed the board of directors of his intention to resign.
Shares of AIG were up 1.75 percent in premarket trading after the news.
Hancock, 57, will remain CEO until a successor is named, as part of the company's transition plan.
"It has been an incredible privilege and honor to run this great company and work with the many talented colleagues who serve the needs of their clients every day," Hancock said in a statement.
"I'm extremely proud of our organization and the steps we have taken to position the company for success long into the future," he said.
Last month, the Wall Street Journal reported that AIG's directors were discussing whether to penalize or oust Hancock over a major setback in the insurance firm's turnaround plan.
AIG's fourth quarter marked a critical midpoint in the ambitious two-year strategic plan aimed at turning the company around. AIG's net loss widened to $3.04 billion, or $2.96 per share, in the fourth quarter ended Dec. 31, from $1.84 billion, or $1.50 per share, a year earlier.
On Thursday, billionaire investor and special advisor to President Donald Trump, Carl Icahn, said he supports the actions taken by AIG.
In a release on Thursday, Douglas Steenland, AIG's chairman of the board, said, "Peter's accomplishments at AIG, including his role in the company's turnaround and in driving shareholder value, are immeasurable."
Hancock joined the global insurance organization in 2010 as executive vice president, finance, risk, and investments. Hancock was named president and CEO of AIG in September 2014, when he was also elected to the AIG board of directors. Previously, Hancock served as CEO of AIG property casualty.