The American International Group has indicated its intent to refocus the company on its core property and casualty insurance businesses, generate sufficient liquidity to repay the outstanding balance of its loan from the Federal Reserve Bank of New York and address its capital structure.
The American International Group (AIG) had drawn $61 billion on Federal Reserve Bank of New York credit facility as of September 30, 2008. AIG plans to retain its US property and casualty, and foreign general insurance businesses, and to retain a continuing ownership interest in its foreign life insurance operations. The company is exploring divestiture opportunities for its remaining high-quality businesses and assets.
AIG has said that it is also actively at work on a number of alternatives for its financial products business and its securities lending program.
Edward Liddy, chairman and CEO of AIG, said: To realize our objective, we will sell a number of extraordinary businesses that are proving to be highly attractive to buyers. We have already been contacted by numerous strong, stable parties, and we expect that buyers will recognize the value of these properties, be a good strategic fit and offer the greatest potential for growth, profitability, and continuing opportunities for employees.