American International Group Inc., the insurer being pressured by activist investor Carl Icahn to boost returns, is considering the sale of blocks of life policies, according to people familiar with the company’s planning.
AIG is weighing the exit of some books of insurance contracts among other options, which could include the sale of life units, said the people, who asked not to be identified discussing private deliberations. The insurer is seeking to narrow its focus on businesses that can help the company grow most profitably.
Chief Executive Officer Peter Hancock intends to update investors before reporting fourth-quarter results on his plans for simplifying the New York-based firm. The presentation is designed to show that the CEO has a vision for improving returns while rebuffing Icahn’s proposal to split AIG into three separate companies.
“There is increased pressure for AIG to improve its performance, based on activist investor involvement,” Jay Gelb, an analyst at Barclays Plc, said in a Nov. 23 note. Jon Diat, a spokesman for AIG, declined to comment.
Hartford Financial Services Group Inc., XL Group Plc, CNA Financial Corp. and Allstate Corp. are among insurers that exited blocks of life or retirement contracts in recent years or sold units to help narrow their focus to property-casualty coverage. Investors who buy books of life policies collect premiums from customers before eventually having to pay out benefits.