American International Group (AIG) continues to fight against calls for the firm to break itself up by planning to buy back $3 billion worth of its shares.
After three consecutive quarters of losses, pressure has increased for the US insurance company to improve its profitability. However, a $1.9 billion net income in the second quarter ended the losing streak. The company took the results as a sign of “strong improvement.”
Carl Icahn, one of AIG’s shareholders and a well-known activist investor, has been a vocal supporter for an AIG breakup. Earlier this year, Icahn has called for AIG to become a “smaller, simpler company” saying that it is the only “sensible path to follow.” In response to the pressure, AIG in February agreed to put hedge fund manager John Paulson on its board as suggested by Icahn.
CEO Peter Hancock said the firm’s improvement was faster than expected and committed to reach its financial targets for 2017. He assured shareholders that the AIG board is fully aligned with its strategy.
