© Reuters. AIG CEO Hancock speaks throughout the White Home summit on cybersecurity and consumer defense in Palo Alto
LONDON (Reuters) – Activist financiers Carl Icahn and John Paulson are making American International Group (AIG) (N:-RRB- more transparent through their representation on its board, the United States insurance provider’s president and chief executive Peter Hancock said on Wednesday. Hedge fund manager Paulson and Samuel Merksamer, a managing director at Icahn Capital, joined the AIG board last month after a project in 2014 by Icahn, the United States insurance company’s fourth biggest financier, for AIG to break itself into three parts. AIG declined Icahn’s proposition and detailed its own method in January, consisting of spinning off its home loan insurance coverage device and selling its broker-dealer network. “Addition of the activists has actually compelled us to be a bit more transparent,” Hancock stated at an instruction in London, adding that after seeing the business from the within, the financiers were gaining a much better understanding of the difficulties of simplifying the company. “There is a lot of commonalities,” Hancock told Reuters on the sidelines of the rundown. Hancock said part of the simplification would include cutting motor insurance coverage business in a few of the nations where it runs, following a choice to take out of motor insurance in China. AIG’s near-collapse in 2008 and its $182 billion bail-out by the U.S. government led to its inclusion in the Federal Reserve’s list of “systemically essential banks” (SIFIs). Icahn has argued a split would help AIG rid itself of the governing concern of being a SIFI, which requires higher capital cushions. AIG also said in January it planned to cut $1.6 billion of costs and return a minimum of $25 billion to shareholders over the next 2 years. “The strategy is quite on track,” Hancock stated. AIG’s European head offices remain in London, and the company may change that head office status if Britain votes to leave the European Union in a referendum next week, Hancock said. “If a Brexit must happen, I suspect we will require a center within the EU and there are some excellent choices, a few of which we have actually examined,” he told the instruction, declining to provide additional details. AIG’s restructuring likewise includes job cuts. Around 100 jobs were recently cut in London, according to a source familiar with the matter. Disclaimer: Fusion Media would like to remind you that the information consisted of in this website is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex rates are not provided by exchanges but rather by market makers, and so costs may not be accurate and might differ from the actual market price, implying costs are indicative and not suitable for trading purposes. Therefore Blend Media does n`t bear any duty for any trading losses you might incur as a result of utilizing this data. Combination Media or anybody included with Fusion Media will not accept any liability for loss or damage as an outcome of reliance on the details including data, quotes, charts and buy/sell signals contained within this site. Please be totally informed regarding the risks and costs connected with trading the monetary markets, it is one of the riskiest investment forms possible.