American International Group (AIG) said Peter D. Hancock, head of the insurance giant’s property casualty unit, will replace president and chief executive Robert Benmosche.

Hancock is expected take charge of the company on Sept. 1. He will also join AIG’s board.

Benmosche will resign from the board and take on an advisory role. In that capacity, Benmosche will advise the new CEO and continue to work with the company’s internal leadership development programs, according to AIG.

Hancock, 55, joined AIG in 2010 after serving as vice chairman at KeyCorp (KEY). He was named CEO of AIG Property Casualty in March 2011.

In 20 years at JPMorgan Chase (JPM), Hancock served as the bank’s chief financial officer, established the bank’s global derivatives group and ran its global fixed income business and global credit portfolio.

“As AIG enters a time of great change and opportunity, we are confident that Peter Hancock is uniquely qualified to lead the company and its employees to future success,” AIG chairman Robert S. Miller said in a statement.

Benmosche stepped into the top position at AIG in 2009, guiding the company through the aftermath of the financial crisis and an initial government bailout of $85 billion. AIG repaid its bailout, which ultimately totaled $182 billion, in 2012.

Benmosche previously indicated his resignation would come early next year, saying he would like to spend more time with his family.

“Under Bob’s leadership, AIG has re-emerged from the crisis as a pre-eminent leader in the global insurance industry,” Hancock said.

AIG shares dropped 26 cents, or 0.5%, to $54.75 in after-hours trading on Tuesday. The stock is up 7.8% so far this year.

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