AIG CEO Prepares to Pare Down Insurance Giant

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American International Group Inc Chief Executive Robert Willumstad will soon take the scalpel to the world’s largest insurer — and not a minute too soon for investors blindsided by mortgage losses that led to an unexpected $5.36 billion quarterly loss.

Willumstad, who was AIG’s chairman before being named CEO on June 15, said he will unveil a plan to dramatically reshape the company at an investor meeting on September 25, three weeks later than promised.

What will AIG, which has significant operations in Los Angeles, shed? Willumstad will try to unload toxic mortgage-linked assets, and divisions where mortgages have drained profits, such as United Guaranty Corp, analysts predict.


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