Mr Hancock has spent his career in financial services, including 20 years at JP Morgan, where he established the global derivatives group, ran the global fixed income business and global credit portfolios, and served as chief financial officer and chairman of the risk management committee.
Mr Hancock has co-founded Integrated Finance, an advisory firm specializing in strategic risk management, asset management, and innovative pension solutions. Most recently, he served as vice chairman of KeyCorp, responsible for Key National Banking.
Robert Benmosche, president and CEO of AIG, said: "I am very pleased that Peter, a recognized expert in risk and finance, will be joining AIG in this important new role. Over the last several weeks, a number of well-respected, seasoned executives have voted with their feet in our team's unwavering commitment to repay taxpayers and create a real future for this great company."
"Peter's comprehensive experience in financial services will help accelerate our existing team's efforts toward AIG's re-emergence as a strong, independent company."