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AIG to keep core insurance, sell assets to pay US loan
American International Group Inc, crippled by losses on bad mortgage bets, said on Friday it will focus on its main insurance operations and put the rest of its businesses up for sale to repay up to $85 billion borrowed from the US government.
- Agencies
- Published: 08:29 October 4, 2008
New York: American International Group Inc, crippled by losses on bad mortgage bets, said on Friday it will focus on its main insurance operations and put the rest of its businesses up for sale to repay up to $85 billion borrowed from the US government.
The company, whose shares soared by as much as 24 per cent before sliding into negative territory in late trading, said it would keep its US property and casualty, and foreign general insurance businesses, and an ownership interest in its foreign life operations, which generated nearly $40 billion in revenues in 2007.
AIG Chief Executive Edward said, "Literally, everything else that doesn't fit under that definition we are considering for sale."
Liddy said he didn't expect a fire sale, adding that buyers would have to assume the debt of the businesses they acquire.
He said, "I want to balance speed with value. ... We have a number of buyers interested."
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