(Bloomberg) -- American International Group Inc., the largest commercial insurer in the U.S. and Canada, is planning to cut annual general operating costs by 3% to 5% through 2017.
The figure fell 4.8% to $8.72 billion last year, New York-based AIG said Friday in a presentation on its website.
Peter Hancock, who was promoted last year to chief executive officer after previously heading the property-casualty operation, has been cutting jobs and moving staff to lower-cost locations like Texas and the Philippines. AIG recorded $265 million in pretax severance costs in the final quarter of 2013 as the firm cut about 3% of its workforce, mainly at the P&C business.
“We remain committed to streamlining our operations and reducing our cost structure,” Hancock said Thursday in a statement as the company announced a decline in fourth-quarter profit.
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