AIG asset sales must slow down
Stricken US insurance giant AIG is to hold back from selling some of its assets, CEO Ed Liddy said at a speech in Hong Kong today.
AIG is currently selling off units to pay back a $150 billion bail-out by the US federal reserve.
In his speech today, Liddy said the US government has given AIG a five year time frame to sort out its financial arrangements.
As such, AIG does not need to hold an immediate ‘fire sale’ to raise funds by selling off units at rock bottom prices.
Current market conditions are not ideal for asset sales, said Liddy, despite some of AIG’s units attracting heavy interest from the world’s biggest names in insurance.
With the new timeframe from the US government, the current pace of asset sales is likely to change, said Liddy.
Liddy confirmed that right now the company is looking to sell its stakes in American International Assurance Company Limited (AIA), southeast Asia’s top life insurance firm, and American Life Insurance Company (Alico), which has its largest operations in Japan.
AIG also announced recently several unit disposals, including the sale of its private banking business, and an investment in a US-based energy firm.
However, Liddy added that the size of the businesses meant that the sales cannot be fast-tracked.
Category: Companies News, Insurance News
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