(Bloomberg) — New York City-based AmericanInternational Group Inc., which is shrinking under pressure fromactivist investors, is committed to retaining operations in bothLife insurance and Property & Casualty coverage, Chairman DougSteenland said.

“We remain of the view that that is the right long-term positionfor AIG,” Steenland said Wednesday at the company’s annual meetingin New York. “Although, the specific components of what’s in eachof those businesses may change.”

Billionaire Carl Icahn said last year that AIG is too big andshould split into separate companies. Chief Executive Officer PeterHancock instead is selling smaller units as part of a plan to freeup $25 billion in capital to be returned to shareholders over twoyears. That has helped ease tension with activists including JohnPaulson, who was elected to the insurer’s board Wednesday alongwith a representative of Icahn’s firm.

Hancock reached a deal in January to sell a broker-dealeroperation, and AIG’s mortgage insurance unit filed in March for aninitial public offering. The CEO has also been cutting jobs.

“This is hard and sometimes painful work,” he said at themeeting. “We have much left to accomplish.”

AIG advanced 14 cents to $56.49 at 12:15 p.m. in New York. Thatcompares with the closing price of $60.92 on Oct. 27, the daybefore Icahn disclosed a stake in the insurer and publicly calledon Hancock to break up the company.

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