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Daily Insurance Industry News
Thursday 18th of October 2018
October 27, 2008

Prudential considers AIG assets bid

by David Masters

Story link: Prudential considers AIG assets bid

Prudential considers AIG assets bid

UK-based life insurance firm Prudential is looking to take over more than just the Asian operations of American International Group (AIG), according to a report in the Financial Times.

Prudential, Britain’s second largest life insurer, last week made it clear that it would be bidding for AIG’s Asian business.

Chief Executive Mark Tucker later told the Financial Times that his company is eyeing up AIG’s other assets.

Tucker said that Prudential is ‘looking right across the board’ at AIG’s assets.

He added that Prudential’s board must have ‘in depth’ discussions about possible acquisitions before a decision is made on what the company will bid for.

Inside sources ‘familiar with the situation’ informed the Financial Times that Prudential is particularly interested in buying up AIG’s US life insurance business.

It is believed that Prudential’s US branch has around $1 billion available to make acquisitions.

Troubled US-based insurer AIG has used over $90 billion of US government money to save itself from bankruptcy, exceeding the government’s original $85 billion loan.

The government has now made a total of $122.8 billion available to AIG, but Chief Executive Edward Liddy said the company may need additional funds to survive.

 

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