AIG sells two business units
Friday April 3, 2009, 7:46 am
American International Group, the US taxpayer-bailed out insurance giant, said on Thursday it has sold two business units for more than $US1 billion ($A1.43 billion) as it works to repay the US government.
AIG said it completed the sale of AIG Life of Canada to BMO Financial Group on Wednesday for some $US263 million ($A377.25 million).
On Tuesday the company closed the sale of Hartford Steam Boiler (HSB) to the German reinsurer Munich Re Group for $US739 million ($A1.06 billion), plus the assumption of $US76 million ($A109.02 million) of HSB securities.
"Despite highly adverse market conditions, AIG is working tirelessly to execute an orderly and effective asset disposition plan to repay the US government," said Edward Liddy, AIG's chairman and chief executive.
Under pressure from the government, which has provided some $US180 billion ($A258.19 billion) in federal bailout money to AIG, the company is working to shed assets.
Liddy said that AIG, once the world's largest insurer and now nearly 80 per cent owned by the government under the bailout, has struck agreements on the sale of ten businesses in recent months and that "several" other transactions were under discussion.
"We continue to evaluate how best to assure the continued strength and success of all of AIG's businesses for the benefit of all AIG stakeholders," he said. |
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