Business and Finance

American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) 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.

Willumstad, a 40-year banking veteran, intends to cut staff and divest parts of the sprawling company — but has kept mum on the details.

“A less complex AIG will be a better competitor,” he said on a conference call with investors on Thursday faxless payday advance.

Analysts are convinced the company has become unwieldy.

“We believe that AIG is simply too large and complex for anyone to fully understand, and that the company could eventually need to be broken into pieces,” said Bijan Moazami, an analyst with Friedman, Billings, Ramsey in Arlington, Virginia.

What will AIG shed? Willumstad will try to unload toxic mortgage-linked assets, and divisions where mortgages have drained profits, such as United Guaranty Corp, analysts said.

United, a mortgage insurer, posted a $440 million operating loss in the second quarter. 

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