American International Group (AIG) has indicated its intent to refocus the company on its core property and casualty insurance businesses. But the firm could struggle to sell many of its operations and may be forced to do so at reduced values.
Edward Liddy, chief executive of AIG, told investors in a conference call that AIG will consider selling everything that falls outside of its US property/casualty, foreign general insurance and foreign life insurance operations.
AIG will have a clear bias towards selling its operations to brand name companies such as those with strong ratings and strong balance sheets, Liddy told investors. He added that the insurer would also have a preference for selling its assets as part of large transactions.
"We have a preference to larger transactions because they can be done with speed and you can attract larger buyers and that will keep our policyholders comforted," Liddy said....
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