New York — The New York State Insurance Department has hired an investment banking advisory firm, Centerview Partners, to assist in evaluating potential sales of American International Group Inc. subsidiaries, the department said in a statement.
New York is home to a significant number of AIG member companies. AIG's 71 insurers are domiciled in 19 states.
Edward Liddy, the newly appointed CEO of AIG, has said he plans to complete, within seven to 10 days, a list of all the assets that would go up for sale. He did not say which subsidiaries were being considered, but said that following the transactions, AIG would look a lot like it did prior to 1998-1999, when it had "less reliance on the financial services side," according to a BestWire release.
AIG must seek regulatory approval from the states where its subsidiaries are domiciled for any sales as it seeks to pay off its $85 billion rescue loan from the Federal Reserve. New York Insurance Superintendent Eric Dinallo is chairman of a new National Association of Insurance Commissioners task force created to oversee and share information about AIG transactions among member jurisdictions and federal and international regulators.
The NAIC task force also must ensure policyholders are protected and there are no allegations of unfair practices by potential buyers.
"AIG's insurance subsidiaries are financially strong, and will be a part of the solution as AIG works toward stability," Dinallo said in a statement. "It is critical to ensure policyholders' interests are protected during this process. Centerview is superbly equipped to help us achieve this goal."
Sources: TradingMarkets.com, A.M. Best via Comtex
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