AIG President and CEO Peter Hancock visits the floor of the New York Stock Exchange, Tuesday, Jan. 26, 2016. (AP Photo/Richard Drew)

(Bloomberg) — American International Group Inc., the insurer being pressured by billionaire investor Carl Icahn to split up, agreed to nominate one of the activist’s allies to the board of directors along with hedge fund manager John Paulson.

The board will be expanded to 16 directors from 14, the New York-based insurer said Thursday in a statement. The second nominee is Samuel Merksamer, a managing director at Icahn Capital.

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