MIXED SIGNALS FROM INSURER
AIG chairman backs departing CEO’s plans
This approach won peace for a while with billionaire Icahn, but he praised the board on the day Hancock said he was leaving
American International Group (AIG) chairman Doub Steenland has reaffirmed board support for the course charted by CEO Peter Hancock, even though Hancock said he was quitting because of insufficient investor backing. In his annual letter on Monday, Steenland said the insurer’s board stood behind Hancock’s two-year goal of returning $25bn to shareholders. He agreed with Hancock that it would be a mistake to break AIG up, rebuffing a plan punted by activist investors Carl Icahn and John Paulson. Icahn’s firm named a representative to the board last year. "The board and management team believe strongly that we are on the right strategic path," Steenland said, referring to a review on whether to split consumer and commercial insurance into two firms. "Analysis showed this to be value destructive. This analysis still stands." Steenland said the board was looking for the "right individual" to be CEO. He is trying to assure investors, customers and staff of the group’s stability as it seeks...
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