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 It's not really a surprise that American International Group Inc. is looking to sell off some international assets to repay its $85 billion government loan. What is surprising is the selling off of its foreign life insurance operations, after newly appointed CEO Edward Liddy said that the insurer was staying in the life insurance business.
In a press release and Webcast Friday Liddy said the company plans to retain its U.S. property
and casualty and foreign general insurance businesses, and it will sell its life insurance operations
in the U.S., Europe, Latin America, South Asia and Japan. AIG's
property and casualty businesses generated approximately $40 billion in
revenues in 2007 and will remain the core business.
"We plan on focusing on and retaining our U.S. property and casualty opportunities, our foreign general insurance business, and continue ownership interest in foreign life insurance businesses and pursue divestitures for our remaining high-quality assets," Liddy said. AIG will keep a stake in an overseas unit that sells life policies in China (AIG owns 19.8% of People's Insurance Company of China), South Korea (AIG Korea Insurance, with AIG Korea Life Insurance and AIG Korea General Insurance) and India (AIG is the minority partner with the Tata Group in two insurance companies in India, holding 26% each in Tata AIG Life Insurance Co. Ltd. and Tata AIG General Insurance Co. Ltd.). He specified that "large slices'" of AIG will be sold to "brand-name" companies because that strategy will hasten divestitures and benefit customers and employees. AIG's global coordinators for the divestiture program are the Blackstone Group LPand J.P. Morgan Chase & Co. "We want to retain a majority interest in AIA. ... There are other businesses in our Alico operations. Those businesses are for sale," Liddy said. AIA Singapore is a wholly owned subsidiary of AIG in Singapore. It has more than 2 million policies in force, more than 3,800 financial services consultants and 800 employees in its Singapore offices. Alico conducts business in more than 55 countries and regions, including Japan; Western, Central and Eastern Europe; the Middle East; South Asia; Latin America; and the Caribbean, according to the Web sites. The life insurance and retirement business is the most valuable part of AIG's business, according to The Deal's Michael Rudnick, and could pay off almost half of the Federal Reserve's loan. AIG's domestic life operations could generate at least $41 billion from a sale, a source told The Deal. AIG's foreign life insurance business could alone sell for $50 billion, Gary Ransom, an analyst with Fox-Pitt Kelton, told The Associated Press. Bidders for the life businesses might include Allianz SE, Sun Life Financial Inc., Munich Re, AXA Group, Manulife Financial Group and Prudential Financial Inc. Other potential bidders, according to Bloomberg, could include Chubb Corp., Ace Ltd. or Allianz's Fireman's Fund Insurance unit, which might be interested in buying AIG's unit that sells coverage to individuals through independent agents. So let's take a look at the life businesses (on Wikipedia) that might be up for sale:
CategoriesComments
From: Ayoub Ghosh,
Alico has been in the MEA since 1953
Posted on:
October 24, 2008 2:18 AM
From: Taha Islam,
Well, I'm in Pakistan and my wife words for ALICO as a Business Development Manager and so far they are cutting down on people. Which means, my wife was also asked to resign as they are selling the ALICO here to some unknown and highest bidder. I personally have insurance with AIG and I am just unable to understand what will happen to that. Its really sad to see such a giant company to go in drain. Plus, economic conditions in Pakistan are just much of an issue and investors are running away from here as well - I do not see a way out for ALICO but sell it self. I hope it doesn't happen but ... can't tell!
Posted on:
October 25, 2008 5:33 AM
From: thomson2008,
AM Best maintains heightened sensitivity to the possibility of erosion of franchise value and employee departures, which would have a detrimental impact to profitability, it said in a statement, noting that profitability could be affected by reduced client confidence and market conditions.
Posted on:
November 7, 2008 4:43 AM
From: tania ahmed,
i dont know why alico bangladesh notsale.the emplyee of alico pays high salary.this is not aceptable.and lot of employee which have actually no works.they take lot of benifit .its the on the factor to fall aig
Posted on:
January 8, 2009 12:40 AM
From: riaz,
aig needs to shoot their employee.because they take lot of benifits .which is actually public money.they take plesure trips.bonus.this is not acceptable.
Posted on:
February 3, 2009 11:04 PM
From: sumon,
aig needs to cut job specially in bangladesh .because they take high salary and high commission on sale . and local manage ment recruit lot of agency director and sales manager .which acutally no works .and they get 10 times high salary.now its time to think about it
Posted on:
February 15, 2009 2:06 AM
From: tanvir shah,
alico needs to shoot some employee in bangladesh seior level because they carry most of the company benifit .for exampale other multinational company salary average $500 but in alico $5000 to $25000 per month and excluding other facilites and they take away most of the profit of the company.for a nominal work .and in future its face like aig or bankruptcy
Posted on:
April 16, 2009 12:19 AM
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ALICO will always be the largest company in witch we DO beleive even without a mother company.
It will always be the first insurance company in witch we trust..........
it's not easy IT IS ALICO