New York — In preparation to repay an $85 billion U.S. Federal Reserve loan that allowed it to avoid bankruptcy after taking losses on mortgage derivatives,
Reuters reports that AIG may list its international life insurance, foreign general and the domestic retirement business. Some of the big foreign players may be interested buyers in the United States on both life and property/casualty sides, says
The brokerage said the asset sales by AIG will benefit
On the other hand, if
Most experts agree that AIG’s insurance operations are insulated from the losses in the company’s other segments, such as AIG Financial Products. Those losses, related to the unit’s investments in credit-default swaps, brought AIG to the verge of bankruptcy recently before the government came to the rescue.
The company is hoping the loan from the federal government will assuage the concerns of nervous policyholders, and avert a wholesale exodus of its insurance customers.
Sources: TradingMarkets.com and Reuters