Pru and Avivia tipped to benefit from AIG sale

by Gill Montia

Story link: Pru and Avivia tipped to benefit from AIG sale

As American International Group (AIG) begins to sell its assets, Prudential and Aviva have both been mentioned as companies likely to be showing a strong interest in the auction.

The US Federal Reserve rescued AIG on Tuesday night, lending the group up to $85 billion to prevent a collapse that would have impacted on markets and economies worldwide.

According to analysts, Prudential could specifically be looking for acquisitions in the US, where it owns Jackson National Life.

Munich Re has already expressed an interest in the AIG sale and other European insurers, such as Axa, Allianz and Aegon are expected to follow suit.

While AIG will seek to make an orderly disposal of its businesses, interest on the group’s rescue loan has been fixed at the rate of three-month Libor plus 8.5%, putting strategies to avert a fire sale under pressure.