Among the pros and cons of a breakup of AIG is the effect on its credit rating, which Moody's says would have a negative effect.

American International Group, Inc. (AIG) executives are being pressured by well-known activist investor Carl Icahn to break the company up into three parts: one for Property and Casualty (P&C) insurance, one for Life insurance and the third backing mortgages. Icahn argues that the breakup would improve AIG’s financial position by theoretically removing the company’s systemically important financial institution (SIFI) designation (along with related capital requirements and regulations), as well as reducing costs and expense ratios.

However, Moody”s Investors Service warns that such a move would have unintended consequences of the credit-impairing kind, and has released an official comment on the proposed breakup.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.