Neal set to be paid $2.7m by AIG despite not joining insurer

John Neal is set to recieve a £2.06m ($2.7m) payout from AIG despite not working a day at the insurer.

In January 2025, Neal announced he would step down as the Lloyd’s of London chief executive to join Aon as global chief executive of reinsurance and global chairman of climate solutions.

He then reversed course on his decision to join Aon, with him being announced as the new president at AIG in July 2025. He was due to take up the role in December.

However, in an SEC filing published on 14 November, AIG said that it ”has reached a mutual agreement” with Neal “that he will no longer be joining the company due to personal circumstances”.

In another SEC filing on 21 November, AIG said: “AIG finalised the documentation relating to the previously disclosed agreement with John Neal regarding the mutual decision that he will no longer be joining the company.

”The agreement provides for the payment of Mr Neal’s foregone incentives at his former employer ($2,700,000).”

Investigation

A report by the Wall Street Journal on 19 November said that, according to people familiar with the matter, AIG ”pulled John Neal’s appointment as the insurer’s second-in-command after it discovered his previous employer launched an investigation into an alleged workplace affair”.

According to the Wall Street Journal’s sources, the council that runs Lloyd’s recently reopened an inquiry into Neal’s conduct and that it ”couldn’t be learned what prompted the fresh inquiry or how AIG learned of it”.

When Insurance Times approached Lloyd’s of London about the Wall Street Journal’s report, a spokesperson for the marketplace said it had launched an investigation after becoming ”aware of market speculation concerning possible historic breaches of policy”.

The marketplace said that chair Sir Charles Roxburgh ”commissioned an independent fact-finding review, to ensure the corporation’s processes were robust and fully aligned with regulatory expectations”.

”That work identified that our internal processes had not been fully adhered to in respect of a prior matter,” a spokesperson said.

”In recent days, new information has emerged. In response Lloyd’s has launched an investigation with the support of a law firm.”