Earlier this week, American International Group (AIG) made a splash with the announcement that it had hired former Lloyd’s CEO John Neal to be the new leader of General Insurance, the company’s property/casualty operations. Meanwhile, the man who once led that insurance business unit is facing charges of sexual assault.
David McElroy, most recently chairman of General Insurance, was charged late last year with three counts of sexual assault and one count of lewd and lascivious conduct by authorities in Lamoille County, Vermont. He was arraigned early this year and pleaded not guilty.
According to records obtained by Insurance Journal from the Vermont Department of State’s Attorneys and Sheriffs, the charges stem from a night McElroy spent with a woman who attended a client conference and fundraiser at the Lodge at Spruce Peak resort in Stowe, Vermont in early March 2024.
A 14-page affidavit from a detective with the Stowe Police Department outlines the incident in detail, starting with the alleged victim first coming across McElroy at a bar during a private gathering. She then saw him at the bar again later that evening, at which time McElroy allegedly asked her to stay for a drink and twice ordered double shots of tequila. After some time, the pair moved from the bar to an executive lounge, and McElroy eventually left the room and came back with a bottle of wine, according to the affidavit.
According to the case file, the detective said the victim told him she next recalled waking up on the floor of her room and realized McElroy was allegedly sexually assaulting her. After the alleged assault, the victim said the situation felt “scary and awkward because she had no memory leading up to that point,” said the detective in the affidavit.
David. V. Kirby, an attorney for McElroy, told IJ via email that his client “categorically denies the charges.”
“[McElroy] is a good man with an impeccable reputation in the insurance industry including 40 years of service without so much as a blemish,” Kirby said. “We intend to defend him vigorously, and he looks forward to his day in court where he can be vindicated. Until then, the charges should be seen for what they are: mere allegations that are vehemently denied.”
AIG said the company has no comment.
McElroy contacted the Stowe Police Department on April 10, 2024 to provide a sworn statement and said he believed the encounter to be consensual. His story included him helping the alleged victim to the front desk to retrieve a key to her room, and they spent the night there.
Twelve days after McElroy provided a statement to police, AIG announced McElroy was retiring on May 1, 2024. The 66-year-old executive, AIG said, agreed to “accelerate his retirement date for personal reasons.”
McElroy was promoted to the newly created role of chairman of General Insurance in October 2023. He assumed the role that January to focus on advancing client development, build distribution partner relationships, and continue to support the company’s focus on underwriting excellence. He had been with AIG since 2018, joining from Arch to become president and CEO of surplus lines writer Lexington Insurance. He was promoted to president and CEO of North America, General Insurance in June 2019, and in August 2020 he was promoted to CEO of General Insurance.
Also in October 2023, Don Bailey was named CEO of North America commercial insurance, and Jon Hancock was named CEO of international commercial insurance and the global personal insurance business. The businesses make up the General Insurance operation. Bailey and Hancock continued in these roles following McElroy’s departure and each continue to do so with the hiring of Neal to the newly created role within AIG of president and head of General Insurance.
McElroy is due for a hearing at Vermont’s Lamoille County Courthouse in August. The sexual assault charges each carry penalties of 3 years to life in prison plus tens of thousands of dollars in fines. The lewd and lascivious conduct charge carries a penalty of up to 5 years in prison.
Topics AIG
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