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(Bloomberg) — American International Group Inc.’s plan to spin off a portion of its mortgage insurance unit is “almost pointless” given the challenges that Chief Executive Officer Peter Hancock faces to fix the much larger property-casualty business, an analyst at Keefe, Bruyette & Woods said.

“AIG’s fundamental problem is very poor P&C profitability, and absent really fantastic price tags, we really don’t see the point of selling better-performing businesses so it can buy back more shares of the remaining underperforming businesses,” KBW’s Meyer Shields said in a note to investors dated Sunday. “Mortgage insurer valuations have compressed significantly over the past two years, so the timing of this planned spinoff is also very far from ideal.”

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