American International Group Inc
Liddy has recommended to the board that they also seek a second candidate for the chairman role, splitting the two roles, AIG said in a statement.
The board is to launch its search immediately. Liddy will remain on the job until the search is concluded, the company said.
He was appointed CEO at AIG in September within hours of the government stepping in to bail out the company.
(Reporting by Lilla Zuill; Editing by Toni Reinhold.)