AIG to sell $6.5bn stake in AIA insurer
American International Group, the insurer that repaid a US bailout, is benefiting on the stock market as the company exits from AIA Group Ltd. By divesting Hong Kong-based insurer AIA, the New York-based company removes a holding whose stock market fluctuations increased volatility in quarterly profits.
AIG is selling about $6.5 billion of AIA, exiting its remaining 14 per cent stake in a business with ties to the company’s founding from 1919. Chief executive Robert Benmosche reached a deal this month to sell a plane-leasing unit, and the US sold its final stake in AIG.
Benmosche is focusing on US life insurance and global property-casualty coverage after AIG sold more than $65 billion in assets, from Asian insurers to its New York headquarters, to help repay the US bailout. – (Bloomberg)