"The personal lines business will be for sale. We will keep the private client operations though," Liddy said.
The personal lines business is called AIG Direct, which covers auto, motorcycle, recreation vehicle and commercial vehicle insurance. In 2007 AIG purchased the remaining 39% of auto insurer 21st Century Insurance for $749 million.
"We have been contacted over the last few weeks by literally dozens and dozens of people that would like to buy assets," Liddy said.
AIG will hold onto its private client operations called AIG Private Client Group, a division of the personal lines property and casualty insurance subsidiaries, which is in line with Liddy's earlier comments.
AIG also announced it would sell off its U.S. life insurance and financial services businesses as well as foreign life insurance business Alico to help pay off its $85 billion loan from the U.S. Federal Reserve. - Maria Woehr
Comments
American International Group Inc. will sell its personal lines business and hold onto its private client operations, CEO Edward Liddy announced during a Webcast Friday morning.
It’s good to see AIG recognizing the core strengths of the organization. Personal lines is something that Esurance, Progressive or GEICO Direct can handle with out restructuring there Organization and to their advantage they can do it without the corporate fat AIG allowed to remain in California. I am insured with AIG for my auto they do a great job but lets face it, auto and is premium driven its not rocket science the only time you need to be concerned is when you have a claim. If you don't understand the insurance industry you should have an agent or some one to help you. But if you are insurance savvy then you know the various rules for each jurisdictions department of insurance the state regulates claims handling now to the point that no insurance carrier would intentional handle a claim badly unless management knew about it. Its process driven and micromanged the only issues are staffing and process which can create issues at this point in the personal lines world.