(Reuters) – American International Group Inc (AIG.N) said it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.
The insurer said in a statement on Tuesday that it plans to cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years.
In a separate filing, AIG said it had frozen its pension plan and let about 300 of its “top 1,400 employees” leave. Further job cuts are planned this year.
Shares of the biggest U.S. commercial insurer by premiums was up 1.3 percent at $56.08 in afternoon trading.
(UPDATE: The Hillary Clinton campaign has postponed a New York City fundraiser scheduled for Thursday until Feb. 16, according to Marisa Faltelson, New York finance co-director at Hillary for America. This story, previously headlined “Hillary Clinton Doing Back-to-Back Finance Industry Fundraisers Just Before Iowa,” has been updated to reflect the postponement.)
Despite being dogged with questions about her ties to Wall Street, Hillary Clinton will take a detour from the campaign trail in Iowa to do a finance industry fundraiser on Wednesday.
Clinton will appear in Philadelphia at a “gala” fundraiser hosted by executives at Franklin Square Capital Partners, a $17 billion investment fund. Rocker Bon Jovi will reportedly play an acoustic set for “friends” who pledge $1,000 and hosts who bundle up to $27,000. (Giancarlo Stefanoni, a Clinton campaign staffer, confirmed that as of Tuesday afternoon, the event is still on.)
The Philadelphia Inquirer notes that “Franklin Square employs Ivy League-educated money managers and salespeople with experience at big Wall Street firms — plus four personal trainers and a dietitian to keep staff happy and productive amid the gym, yoga and nap rooms, Sol LeWitt art installations, and fancy cafeteria.”