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BRIEF-AIG says executing strategy of "leaner, more profitable and focused" insurer
January 26, 2016 / 12:18 PM / 2 years ago

BRIEF-AIG says executing strategy of "leaner, more profitable and focused" insurer

Jan 26 (Reuters) - AIG

* Says executing strategy of “leaner, more profitable and focused” insurer

* Returning at least $25 billion of capital to shareholders over next two years

* Executing IPO of up to 19.9% of United Guaranty Corporation as first step towards a full separation

* Streamlining the business through divestitures and exits, including sale of AIG Advisor Group

* Will create a new “legacy” portfolio to hold non-strategic assets and has appointed Charlie Shamieh as Legacy CEO

* Targeting about 9% consolidated roe by 2017, over 10% roe in the operating portfolio

* Board approved a number of organizational changes, including the creation of nine “modular” business units

* Reducing $1.6 billion in expenses within two years; improving commercial P&C accident year loss ratio by six points by 2017

* Board’s actions reflect “full support” for plans that Peter Hancock and management team have put forward

* “Believes that a full breakup in the near term would detract from, not enhance, shareholder value” Source text for Eikon: Further company coverage:

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