Carl Icahn’s Dream of Dismantling AIG Moves Into Final Stage (1)

Carl Icahn’s vision for AIG is about to become a reality.

Five years after the activist investor called for its breakup, American International Group Inc. announced plans to shed its massive life and retirement operation, the final dismantling of a company built over decades by former Chief Executive Officer Maurice “Hank” Greenberg.

Dropping a business that accounted for about a third of AIG’s revenue last year leaves a much simpler company for Peter Zaffino, who takes over as CEO on March 1. For years, investors and analysts have questioned whether AIG would make more sense if ...