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AIG sells Canadian unit; more sales to come soon

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Published January 13, 2009 at 12:18 PM
AIG_logo.gifAmerican International Group Inc. has sold off AIG Life Insurance Co. of Canada to help repay its $152 billion bailout from the U.S. government, and reports suggest that the insurer is firming up even more deals that will be announced soon.

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Canada's fourth-largest bank, BMO Financial Group, purchased AIG Life of Canada, which sells insurance and retirement savings products, for about C$375 million ($308 million). The deal, which is expected to close in June, will expand the Bank of Montreal's wealth management offerings, according to a press release. J.P. Morgan Securities and Blackstone Advisory Services acted as advisers on the deal.

Former CEO Maurice "Hank" Greenberg has so far been silent on the deal after he claimed that AIG was selling assets at "fire-sale" prices. However, he'll have more opportunities to speak out as announcements of more deals could soon be on the way.

According to Reuters, the insurer has received the first round of bids for its aircraft leasing unit, International Lease Finance Corp. The sale is being handled by investment bank Moelis & Co. and could bring in as much as $8 billion.

That report also suggest that AIG has retained UBS to sell its asset management business, which exists within AIG Investments, and books are expected to go out this week. The sale of AIGFP, the financial products unit, could be tricky because it contains a large amount of risky assets, according to The Wall Street Journal.

Meanwhile, AIG renamed its U.S. auto business to prepare the operation for potential buyers, which could include Zurich Financial Services AG, Allstate Corp. and Travelers Cos.

Here is the latest list of completed asset sales:
For all of the rumored sales, check out some of the links below. - Maria Woehr

AIG asset sale update: Greenberg calls HSB deal 'fire sale'
AIG's CEO says no need for 'fire sale'
PKO eyes AIG's Polish arm
AIG could soon announce more asset sales
AIG asset sale progresses
No bonus for AIG execs as bidders for assets line up
AIG asset sales may happen before end of year



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