State Farm, the largest U.S. home and auto insurer, plans to shut 11 U.S. facilities, displacing about 4,200 workers, after a $7 billion annual underwriting loss last year on auto policies.

The reinsurance deal transfers liabilities on certain U.S. policies from 2015 and earlier. The coverage involves so-called long-tail policies, in which claims can emerge years after a policy is issued.

AIG's business in Brazil agreed to transfer about 25,000 auto policies to a unit of Porto Seguro SA as the U.S. company scales back its international businesses.

AIG would weigh acquisitions to bolster high-priority businesses, even as CEO Peter Hancock exits other units, the head of the companys commercial insurance operation said.

The CEO is focusing on improving margins in the property-casualty operations that are the core of AIG.

The compensation included a $2.45 million bonus and more than $6 million in stock and option awards, up from $2.2 million a year earlier.

Dan Loebs reinsurer cited risks tied to regulation as the IRS and U.S. Senator Ron Wyden work to limit what the lawmaker called a tax loophole used by hedge fund managers to route investments abroad.

Activist investor Carl Icahn, whos pushing AIG CEO Peter Hancock to shrink the insurer and boost returns, said the CEOs presentation next week on his vision must offer a drastic strategic shift.