aig 01AIG to spin off mortgage unit, cut jobs in sweeping overhaul

 

This is a reuters.com article.

 

American International Group Inc (AIG.N) said it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.

The insurer said in a statement on Tuesday that it plans to cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years.

In a separate filing, AIG said it had frozen its pension plan and let about 300 of its “top 1,400 employees” leave. Further job cuts are planned this year.

Shares of the biggest U.S. commercial insurer by premiums rose about 2.5 percent in premarket trading.

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