In late October, Icahn wrote a letter to AIG CEO Peter Hancock outlining a plan to shrink the company. In a statement Monday, Icahn said he has met with Hancock more than once to discuss the issue.
Shares of AIG were up slightly in early trading Monday.
"In all of our discussions with Mr. Hancock it was abundantly clear to us that he is not willing to take the bold steps that we, and so many other shareholders, believe are long overdue," Icahn said in Monday's statement. "In addition, in those conversations he failed to lay out any alternative strategic plan with the potential to unlock value for shareholders or to provide compelling reasons as to why these businesses belong together."