Alico to split from AIG
by David Masters
Story link: Alico to split from AIG
AIG is pushing through plans to splice American Life Insurance Company (Alico) from its control and establish the unit as an independent business.
“We are determined to get [Alico] out from under the AIG brand as quickly as we can,” said AIG spokesperson David Monfried.
A separate board of directors and management team will be appointed for Alico under the plans, which will see Alico public listed in New York with shares available on an initial public offering.
AIG said announcing the public offering will accelerate the spin-off process, first proposed in March.
“Today’s announcement represents a roadmap for our independence,” said Alico chairman and CEO Rodney Martin.
“Our ability to weather current economic conditions across all of our markets demonstrates the strength of our operations, diversification of our platform, confidence of our customers and support of our distribution partners.”
AIG chairman and CEO Ed Liddy said the split will help the company pay off $182.5 billion it owes to the US government after last year’s bailout.
“At this stage, we expect that a public offering for Alico will be beneficial to all stakeholders, including US taxpayers, policyholders, employees and distribution partners,” Liddy said.
Alico has 19 million customers in 54 countries, and more than $89 billion assets under management.