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 It looks like American International Group Inc.'s asset sales are starting to heat up. The bailed-out insurer is in talks to sell its personal car insurance unit, 21st Century Insurance, to Zurich Financial Services.The asset is rumored be be worth $2 billion and could be the biggest asset sale to date. AIG is selling assets to help pay back $150 billion in government loans.
AIG first took a stake in 21st Century in 1994. After acquiring
a majority stake in 1998, it bought the rest of the business in 2007 in a deal that valued the business at about $1.9
billion.
AIG has announced several sales totaling around $2.3 billion:
One deal expected soon is the sale of AIG's three broker-dealers to a private equity firm (see The Deal's Pipeline). Rumored bidders include Bain Capital LLC, Hellman & Friedman LLC, Carlyle Group and Kohlberg Kravis Roberts & Co. Meanwhile, the bidding for American International Assurance could happen this month, according to reports. The Asian insurance unit, estimated at about $20 billion with possible bidders including China Life Insurance Ltd., HSBC Holdings plc, Prudential plc, Manulife Financial Group Inc. and Allianz Insurance Co. Philamlife could bring in around $4 billion. East West Banking Corp. has already scooped up Philam's Savings Bank, consumer bank and car financing. The rest of the assets including its life insurance business could be sold to any of the following bidders: The Ayalas' Bank of the Philippine Islands may team up with Prudential plc, First Pacific, AXA of France and the Metrobank Group. Manulife Financial of Canada and the partnership of Assicurazioni Generali SpA and Banco de Oro Unibankbidders are also apparently bidders for the unit. International Lease Finance Corp. apparently could be worth $6 billion to $10 billion. The ILFC has reportedly drawn interest from several private equity firms including Carlyle Group, KKR, TPG Capital, Greenbriar Equity Group and sovereign wealth funds Temasek Holdings Pte. Ltd., Istithmar World PJSC, Kuwait Investment Authority and China Investment Corp. (see the story in The Deal's Pipeline). TPG dropped out of the process, a Reuters report said last week. AIG Global Real Estate fund management business has around $12.4 billion in assets and $5.2 billion in equity capital. The unit could be sold for about $9 billion. Interested bidders could include BlackRock Inc. and Blackstone Group LP. AIG Edison Life Insurance Co. and AIG Star Life Insurance Co. are also for sale. Bidders could include: Prudential Financial Inc., Manulife Financial Corp. Allianz Group, Aegon NV, Nippon Life Insurance Co., Tokio Marine Holdings Inc., Gibraltar Life Insurance Co. Ltd., T&D Holdings Inc. and Manulife Life Insurance Co. were rumored to be potential buyers. - Maria Woehr Also see: AIG: The house that Hank built AIG: If you can't sell, go public? Categories Deal Video
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