(Adds statement from AIG and context)
Feb 27 American International Group Inc's
directors are discussing whether to penalize or oust
Chief Executive Peter Hancock over a major setback in the
insurance firm's turnaround plan, the Wall Street Journal
reported, citing people familiar with the matter.
Fifteen directors are expected to debate on various
potential actions at a board meeting in early March, the report
The goals for AIG's two year restructuring plan include
returning $25 billion to shareholders and becoming a "leaner,
more profitable and focused insurer" by trimming its property
and casualty business and shedding unwanted assets.
AIG's fourth quarter marked a critical midpoint in the
ambitious two-year strategic plan aimed at turning the company
around. AIG's net loss widened to $3.04 billion, or $2.96 per
share, in the fourth quarter ended Dec. 31, from $1.84 billion,
or $1.50 per share, a year earlier.
"AIG’s Board of Directors and management team have agreed on
a clearly defined transformation plan for the company to deliver
high quality, sustainable earnings," the company said in a
statement on Monday. "At this point every year, we actively
review our past and future expected performance against our
plan, and this year is no exception," the company said.
The restructuring plan, unveiled early last year, followed
pressure from billionaire activist investors Carl Icahn and John
Paulson in 2015 to split the company in three because of AIG's
poor performance that year.
By slimming down, AIG could shed its designation as a
non-bank systematically important financial institution (SIFI),
Icahn has said.
AIG has had the label since its near collapse in 2008 and
the government bailout that followed, driving regulators to
consider some non-bank companies as "too big to fail."
(Reporting by Nikhil Subba in Bengaluru; Editing by Anil
D'Silva and Cynthia Osterman)