American International Group Inc. (NYSE:AIG) is facing increased pressure from Hank Greenberg to unlock value for shareholders. The former CEO said late last week that he was considering and evaluating strategic alternatives designed to lead to the maximization of their investment in the company. Shares in the company jumped almost three percent today while options volatility soared on the news.

Greenberg said that he believes there are opportunities to significantly improve the company's performance and strategic direction, as well as the value of their investment. In this connection, he anticipates holding discussions with stockholders and third parties that may address a number of issues.
 
These discussions include without limitation, their respective views on the company's business and prospects, the suggested disposition of certain of its operations, investment opportunities and concerns over the direction and management of the company generally, and other opportunities to improve or realize on the value of their investment in the company.

Many investors are concerned that the insurance company will face a writedown related to subprime assets; however, the bad news is likely already priced into the stock. This move by Greenberg should help AIG in the long run by refocusing management on ways in which shareholder value can be maximized. Combined, these factors make AIG a stock worth watching!

Related Companies
Principal Financial Group, Inc. (PFG)
The Hanover Insurance Group, Inc. (THG)
Genworth Financial, Inc. (GNW)