There is an informative message given by the head of American international group Inc. to the investors who are known as Carl Icahn and also John Paulson.
AIG Chief Executive Peter Hancock said in a meeting call with analysts Tuesday that management and the board have “carefully reviewed” the idea of contravention up the insurer on many occasions, and finished that such a go “did not make financial sense.”
These assumptions that are made by Mr. Hancock are not right.
AIG’s title as “systemically important” by a panel of federal regulators “has not incomplete our ability to return capital,” Mr. Hancock said.
Rather, he said, ratings firms like the stability and diversification of a multiline insurer, and the firms “are the key determinant of how much capital is available for distribution” to shareholders.
Mr. Icahn also added, “I’m going to wait until I talk to them, As long as he called me up and said he wants to come talk to me, before I pass judgment I want to hear his arguments.”
Paulson has “little confidence in management, strategy and structure,” the declaration said, and wants to see spinoffs to shareholders of some of AIG’s businesses, more divestitures and extra capital returned to shareholders.
When it was asked about the whether uncertainty and its rules related to AIG so it was explained by him, “The answer is definitively no.”
He added, “We anticipated this [SIFI] designation before we exited the government’s cradle,” he said, referring to the government bailout of AIG during the financial crisis. The company already did “massive” divestitures; we got that done by the end of 2011.” He again added in other statement, “distraction from our cost-cutting initiatives.”
There is a thing that can easily sell for more than 30 businesses that has been done since 2008 for more than $90 billion. Mr. Hancock said that AIG continues to looks for ways “to reduce costs and complexity” of AIG. “There are no sacred cows and we consider all avenues to improve shareholder returns,”
The plan is for the recent expenses that includes in it about 23% of its 1,400 manager position. There shares were not comfortable and were down 4.3% to $61.01 in the trading down in the afternoon.