According to a Reuters report, American International Group, Inc. (AIG) is in advanced talks with a potential buyer for part of its American personal lines business, as part of the insurer’s attempt sell assets and pay off a massive government loan.
The report, which included conversations with AIG’s Chief Executive, Edward Liddy, said that the company considered offering investors a “laundry list” of units to be sold, ultimately decided it would be better to list what it would be retaining.
The insurer, just one financial company among many that have been crippled by bad mortgages (albeit one of the most prominent) announced details of their plan to pay back as much as $85 billion in U.S. government loans.
The current plan is to retain its U. S. property and casualty and foreign general insurance lines, and keep an ownership interest in its foreign life insurance operations.
Liddy did not reveal how quickly he expected any deal to be finalized, but did say, “I want to balance speed with value,” and. “We have a number of buyers interested.” He also said that some of AIG’s smaller businesses, such as their 60% state in reinsurer Transatlantic Holdings, Inc, and their Hartford Steam Boiler Inspection and Insurance Co. were likely to sell pretty fast. “People are already looking at those. We want to make sure the contracts are rock solid. Nothing has been signed, but we have started the process,” he said.
Liddy did not say whether or not Allstate Corp., where he was formerly both chief exec and chairman, was interested in or actually bidding on AIG’s personal lines or other businesses.I have no knowledge about what Allstate is doing or not,” Liddy said.
He also declined to state whether or not he thought stockholders would or should hold on to their AIG stock, which has declined by 92%, stating merely that each one would have to make their own decisions, though he did add that, “when we come out of this, our domestic property and casualty and foreign general insurance business (alone) will have business revenue of about $40 billion a year.”