Lightyear Capital and PSP Investments have agreed to acquire AIG Advisor Group from American International Group (AIG).
Terms of the deal have not been disclosed.
With around 5,200 independent advisors and 800 full-time employees, AIG Advisor Group is an independent broker-dealer in the US.
The group includes four broker-dealers, comprising of Atlanta-based FSC Securities, New York-based Royal Alliance Associates, Phoenix-based SagePoint Financial and Oakdale-based Woodbury Financial Services.
AIG president and CEO Peter Hancock said: "AIG continues to review its business strategy and take actions to become a more efficient, less complex company, able to respond to our clients’ needs with greater agility.
"We believe advisors, clients, and partners of Advisor Group will benefit from Lightyear’s and PSP Investments’ ownership of the independent business, and we look forward to a continued relationship with Advisor Group as an important distributor of AIG products."
Subject to regulatory approvals, the deal is expected to complete in the second quarter of this year.
AIG is also planning to spin off its mortgage insurance unit and intends to reduce around $1.6bn of costs, reported Reuters.
AIG provides insurance services in around 100 countries and jurisdictions across the globe.