American International Group (AIG) is reportedly planning to divest its mortgage-insurance business, in a bid to help get rid of regulatory burden.
The shareholders Carl Icahn and John Paulson have recommended AIG to consider the three-way split of the firm, including mortgages, life and property/casualty, to advance the firm’s stock and reduce regulatory sanctions by federal policy makers, reported The Wall Street Journal.
This month, AIG signed an agreement with ASSA Compañía Tenedora and ASSA Compañía de Seguros (ASSA) to sell its operations in Central America, for an undisclosed sum.
Under the deal, ASSA will purchase 100% stake in AIG’s operations of Central American countries El Salvador, Guatemala, Honduras and Panama.
In June this year, AIG Taiwan Insurance also agreed to sell its Taiwan’s consumer and small to mid-size enterprise (SME) businesses for Nan Shan Life Insurance, for around $158m.
AIG is selling the portion of its business in Taiwan to expand the commercial insurance operations in the country, and will continue its business partnership with Nan Shan in the future.
AIG offers insurance services to commercial, institutional, and individual customers in around 100 countries and jurisdictions. It also provides life insurance and retirement services in the US.
Image: AIG headquarters on 175 Water Street New York City. Photo: courtesy of AIG.