Push Admin

Facing activist pressure, AIG chief to step down

Article (news)

Agence France-Presse

NEW YORK - Insurance giant American International Group announced Thursday that chief executive Peter Hancock will step down following a steep fourth-quarter loss and under pressure from activist investors.Hancock, who was named chief executive in September 2014, alluded to the discord with shareholders in a statement. Activists Carl Icahn and John Paulson have called for AIG to be broken up.&quot;I believe this is the right decision to make for the company and all its stakeholders,&quot; said Hancock, who plans to remain chief executive until a successor is named. &quot;Without wholehearted shareholder support for my continued leadership, a protracted period of uncertainty could undermine the progress we have made and damage the interests of our policyholders, employees, regulators, debt holders, and shareholders.&quot;AIG reported a loss of $3.0 billion in the fourth quarter following a hefty charge to build reserves for future losses.The US government saved AIG from failure at the height of the 2008 financial crisis with a controversial $182 billion bailout that was later repaid in full by the insurer under Hancock&#x27;s leadership.Hancock had opposed Icahn and Paulson&#x27;s efforts to break the company up, instead unveiling a cost-cutting and restructuring plan. However, the CEO was unable to win support from activists.Icahn endorsed Thursday&#x27;s developments, saying on Twitter &quot;we fully support the actions taken today by the board of AIG.&quot;Shares of AIG rose 1.9 percent to $64.63 in pre-market trading.

NEW YORK - Insurance giant American International Group announced Thursday that chief executive Peter Hancock will step down following a steep fourth-quarter loss and under pressure from activist investors.

NEW YORK - Insurance giant American International Group announced Thursday that chief executive Peter Hancock will step down following a steep fourth-quarter loss and under pressure from activist investors.