The man who was once Snoopy’s boss will now try to guide American International Group out of the doghouse.

Robert H. Benmosche

AIG’s board of directors announced that they have elected Robert H. Benmosche as their new president and chief executive officer, effective Aug. 10, with the retirement of current chairman and CEO Edward M. Liddy.

In May, the board announced it would take Liddy’s recommendation to split the positions of chairman and CEO of the insurer, which is working to reorganize itself and repay billions in federal taxpayer assistance. The company has yet to elect a new chairman.

Benmosche, 65, is the former chairman, president and CEO of MetLife, leading the insurer in its transition from a mutual to a public company in 2000. He joined MetLife in 1995 as an executive vice president responsible for business integration and product development, marketing and sales efforts focused on MetLife’s individual customers.

Prior to his work with MetLife, Benmosche served as an executive with Paine Webber and Chase Manhattan Bank.

Dennis Dammerman, chairman of the AIG Board of Directors’ Search Committee, called Benmosche a good successor to Liddy.

“Bob’s outstanding track record as head of a major insurer and his success in business integration and execution of major transactions make him well-suited to lead AIG in the next phase of its restructuring,” Dammerman said in a statement. “We are confident he will continue the substantial progress the company has achieved under the leadership of Ed Liddy. Ed answered the call for public service amid an extraordinary financial crisis that has only now begun to ease, and our company and country owe him a debt of gratitude.”

Liddy, who assumed leadership of the company as it dealt with serious financial difficulties, will step down short of serving one year to aid the company reorganize itself. He said both AIG and American taxpayers are “fortunate to gain the commitment of Bob Benmosche, a highly experienced executive who understands the challenges and opportunities of restructuring complex organizations.”

“Our stakeholders can look forward to a seamless transition and rest assured that the work of rebuilding the value of AIG’s businesses and repaying the government will continue uninterrupted,” Liddy said

Benmosche praised Liddy and his team for “a terrific job” stabilizing the insurer and implementing a strategy to repay its stockholders, including American taxpayers.

“Now he [Liddy] has passed the baton to me, and I look forward to continuing the race. With my AIG colleagues, we will focus on this mission: maximizing the value of the company’s assets and meeting all of our stakeholder obligations,” he said.

In addition to Benmosche’s election, AIG announced that Paula Rosput Reynolds, vice chairman and chief restructuring officer, has decided to leave the company, effective late in the third quarter.

Liddy praised Reynolds’ “role in our progress, having divested operations around the world and implemented a durable, long-term restructuring plan that has stabilized the Company and provided time for asset values to recover.”