American International Group to Divest Life-Insurance Business

is taking steps to split off its life-insurance business into a separate company, leaving it to focus on property-casualty insurance, a separation it will make under the direction of a new chief executive.

In news releases late Monday afternoon, the New York company said current Chief Executive Brian Duperreault will hand over his title on March 1 to Peter Zaffino, the company’s president.

The...