AIG mulls Transatlantic sale to repay US debt

Font Size

Print

Feedback

Email

Discuss

American International Group Inc., the insurer that agreed to a US takeover to avert collapse, is examining “strategic alternatives'' including the sale of its stake in reinsurer Transatlantic Holdings Inc.

Transatlantic formed a committee of board members to consider proposals, New York-based AIG said on Monday in a regulatory filing. AIG owns a 59% stake in Transatlantic worth about $2.1 billion, based on the unit's closing price on Sept. 26. AIG Chief Executive Officer Edward Liddy, appointed by the government this month, will say on Oct 3 which units he'll sell to repay the $85 billion government loan. AIG plans to keep its property and casualty and life insurance operations, he has said. The company was taken over by the US on Sept. 16 after housing- tied losses and credit downgrades caused a cash squeeze.

“Our ratings profile has recently been impacted by events surrounding AIG and we look forward to resolving any uncertainty that may exist,'' said Robert Orlich, CEO of Transatlantic, on Monday in a statement. Transatlantic hired Lazard Ltd. as its financial adviser and Fried, Frank, Harris, Shriver & Jacobson LLP as its lawyer, the company said.