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Daily Insurance Industry News
Tuesday 11th of December 2018
November 7, 2008

AIG asset sales imminent

by David Masters

Story link: AIG asset sales imminent

Troubled insurance giant American International Group (AIG) is expected to start selling off units before the end of the year according to a report by the Reuters news agency.

A deal to sell off its US personal lines units, valued at $5-7 billion, is likely to be completed soon.

Its smaller energy equipment insurer, Hartford Steam Boiler Inspection and Insurance Co, is also close to the point of sale.

The two sales are the first sign that recently appointed CEO Edward Liddy is making headway with his plans to raise capital by selling off large parts of AIG’s business.

AIG owes more than $120 billion to the US government following a last minute rescue deal when the Lehman Brother’s bank collapsed.

Analysts have warned that the government might need to renegotiate the loan with AIG, as the interest rates currently charged to AIG make it almost impossible for the company to fix itself.

AIG’s third quarter results are expected on Monday. Analysts anticipate a net loss close to $4 billion, making it the fourth unprofitable quarter in a row for the company.

A spokesperson for AIG declined to comment on whether the asset sales were likely to go ahead.

 

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