American International Group Inc. named Brian Schreiber and Geoffrey Cornell deputy chief investment officers as the insurer revamps oversight of its $358.3 billion portfolio.

Schreiber, 48, will oversee specialized asset classes including real estate, private equity and hedge funds, New York- based AIG said yesterday in a statement.

Cornell, 42, will manage high-yield and investment-grade corporate bonds and municipal securities.

They will report to William Dooley, executive vice president for investments.

AIG is overhauling the portfolio’s leadership as Chief Executive Officer Robert Benmosche simplifies the company after selling units to help repay a U.S. bailout.

Monika Machon, who was chief investment officer, will become treasurer, a post that Schreiber previously held.

The changes will help “maximize returns and take a consolidated approach to all investments across AIG,” Benmosche, 69, said in the statement. “This is an area where AIG will distinguish itself.”

Cornell and Schreiber’s new roles help AIG prepare for Dooley’s eventual retirement, according to a person familiar with the planning, who asked not to be identified because the information isn’t public. Dooley, 60, has worked at the insurer since 1978 and became an executive vice president in 2010, according to the company’s website.

AIG fell 4.2 percent to $49.50 in early trading at 7:39 a.m. in New York after the company reported third quarter results on Oct. 31 that included an underwriting loss and lower premium revenue at the property/casualty division.

‘Messy’ Earnings

Results were “messy and light on earnings,” Randy Binner, an analyst at FBR Capital Markets, said in a research note yesterday. “While these light earnings are a setback, we maintain our outperform rating.”

AIG has climbed 46 percent through yesterday in New York trading. Third quarter profit was $2.17 billion, an increase of 17 percent from a year earlier.

Schreiber was head of strategic planning as AIG crafted plans to repay a U.S. bailout that began in 2008 and swelled to as much as $182.3 billion. He was then named treasurer to help persuade investors to contribute capital AIG needed to replace U.S. funds. AIG finished repaying the bailout late last year.

Restructuring, Recapitalization

“Brian’s leadership and vision were instrumental in the work surrounding the restructuring and recapitalization of the U.S. government’s investment in AIG,” Benmosche said.

Cornell, who started at AIG in 1994, was most recently CIO for the North America region, AIG said. He has an MBA in finance from Fordham University and graduated from Bryant University.

AIG’s portfolio included $282.8 billion of bonds as of Sept. 30, according to the company’s quarterly regulatory filing. The company had $19.7 billion of mortgages and other loans.

AIG’s life insurer had $3.5 billion in private equity and $4.9 billion in hedge funds as of Sept. 30, and the property- casualty unit had $3.7 billion in private equity and $3.6 billion in hedge funds, according to a document posted on AIG’s website.

Schreiber, who will also oversee private placements and structured products, started at AIG in 1997 as a portfolio manager in the global investments group, after working as a banker at Lehman Brothers Holdings Inc. He has an MBA from Columbia Business School and an undergraduate degree in finance from New York University.

As treasurer, he was also responsible for strategic planning, corporate development, and investor relations.

Strategic Planning

Strategic planning, led by former Morgan Stanley banker Peter Juhas, and Liz Werner’s investor relations department, will now report directly to Chief Financial Officer David Herzog, according to a company memo dated yesterday from Herzog and Dooley.

Machon, 53, was named global head of asset management in 2009, after serving in roles including head of fixed income, CEO of an AIG European asset manager, and global head of emerging markets fixed income.

She’s now responsible for “optimizing AIG’s funding sources and capital structure while also working to reduce our costs of capital and generating greater financial flexibility,” Benmosche said.

Machon started at AIG in 1998, after working at firms including Barclays Plc and Northwestern Mutual Life Insurance Co. She has a law degree and an MBA from Indiana University and a bachelor’s in business administration from Rockhurst University.

–Editors: David Scheer, Dan Reichl