Breaking up American International Group Inc (AIG.N) does not "make financial sense," Chief Executive Peter Hancock said on Tuesday, responding to proposals made by billionaire investor Carl Icahn last week.
Icahn, in one of the largest activist campaigns of the year, wrote to Hancock urging to him to spin off AIG's life and mortgage units into public companies, cut costs more aggressively and give back more to shareholders.
The move would return more cash to shareholders, Icahn had said, and help AIG rid itself of the regulatory burden of being a systemically important financial institution (SIFI), which require higher capital cushions.