AIG CEO says Icahn’s break up plan does not “make financial sense”


Breaking up American International Group Inc 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 AIG to break itself apart, cut costs more aggressively and give back more to shareholders.

“We of course will meet with him to further share our conclusions and give him an opportunity to elaborate on his views,” Hancock said on a conference call to discuss AIG’s third-quarter results.

AIG’s quarterly operating profit plunged as income at all but one of its underwriting businesses declined and tumultuous markets hurt its investments.