Icahn vs. Hancock

Investor Carl Icahn, which owns a “large stake” in AIG is encouraging AIG CEO Peter Hancock, via an open letter, to split the company into three pieces declaring that AIG is “too big to succeed” due to its SIFI designation (systemically important financial institutions).

Icahn ended his letter with “it is now incumbent upon you to explain why, despite pressure from the stock price, regulators, and shareholders, the company should not take immediate and transformative action”. To which Peter Hancock responded that the insurer has already taken “important and significant steps to reposition AIG” yet “maintains an open dialogue with all our shareholders and welcomes their feedback and ideas”. History repeats itself. Back in 2012, hedge fund manager/billionaire John Paulson demanded that Hartford split its life insurance from its P&C operations. Hartford sorta obeyed.