(Bloomberg) — American International Group Inc., the insurer facing pressure from activist shareholder Carl Icahn for a breakup, posted a third-quarter loss as investment results deteriorated. The company plans to cut as many as 400 senior-level jobs.
The net loss of $231 million, or 18 cents a share, compares with profit of $2.19 billion, or $1.52, a year earlier, the New York-based company said in a statement Monday. Operating income, which excludes some investment results, restructuring costs and expenses tied to the retirement of debt, was 52 cents a share, about half the average estimate of 22 analysts surveyed by Bloomberg.
Icahn told Chief Executive Officer Peter Hancock in a letter last week that AIG should split into three insurers to escape the restrictions imposed on the largest financial firms. One company would focus on life insurance, the second on property-casualty coverage and the third on mortgage guaranties, under the billionaire's proposal. Icahn has a stake of about 2%, according to people familiar with the holding.
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