NEW YORK CITY—AIG has named Douglas Dachille, co-founder and CEO of First Principles Capital Management, as EVP and CIO, while simultaneously announcing that it will acquire Dachille's firm. Dachille is succeeding William Dooley, who is retiring as EVP, investments.

The New York City-based insurer and GlobeSt.com Thought Leader has hired capital markets and investment veteran Dachille to oversee its global investment portfolio, which an SEC filing indicates as $357 billion as of March 31. It includes approximately $76 billion of real estate investments, including RMBS and CMBS, that AIG manages on behalf of clients and member companies, a spokeswoman tells GlobeSt.com.

Dachille will report to Peter D. Hancock, AIG's president and CEO, and will join its operating committee. Before leading First Principles for 11 years, Dachille was president of Zurich Capital Markets. He began his career at JPMorgan Chase & Co., where he was global head of proprietary trading and co-treasurer, and built the hybrid derivatives business.

With $10 billion in assets under management, First Principles will continue to operate as a wholly owned subsidiary of AIG, headquartered in New York City. The acquisition of the privately held firm is expected to close by the end of the third quarter; deal terms were not disclosed.