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REFILE-UPDATE 1-Icahn: AIG should split into 3 firms to avoid "high-risk" tag

Published 2015-10-28, 10:00 a/m
© Reuters. REFILE-UPDATE 1-Icahn: AIG should split into 3 firms to avoid "high-risk" tag
AIG
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(Corrects spelling of 'activist' in paragraph 1)
Oct 28 (Reuters) - Activist investor Carl Icahn said on
Wednesday American International Group Inc (N:AIG) AIG.N should split
its life and mortgage insurance units into three public
companies to avert the U.S. government's "too-big-to-fail" tag.
Icahn, who disclosed that he owns a "large stake" in AIG,
also said in an open letter to the company's CEO that it should
begin a "much needed" cost control program to better compete
with peers. (http://bit.ly/1M1Sxtf)
AIG shares rose as much as 4 percent to $63.44 in early
trading.
Icahn said each company would be small enough to avert the
systemically important financial institution (SIFI) designation,
which indicates regulators are concerned that a company's
failure, should it ever occur, might imperil the financial
system.
AIG has been subject to new supervision by the Federal
Reserve after it was designated as a "systemically important"
firm by a top U.S. regulatory panel in 2013.
AIG, the largest commercial insurer in the United States and
Canada, is expected to report third-quarter earnings on Nov. 2.
"We have taken important and significant steps to reposition
AIG by both simplifying and de-risking the company, and
realizing attractive valuations from non-core asset sales," AIG
Chief Executive Peter Hancock said in a separate statement.
urn:newsml:reuters.com:*:nBw3MMMpfa

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