AIG lowers Fed debt, transfers non-US life insurers
Bloomberg / London Dec 03, 2009, 00:32 IST
American International Group Inc lowered its debt by $25 billion as the company transferred two overseas life insurance units destined for sale to Federal Reserve vehicles.
AIG reduced its debt on a Federal Reserve credit line by $16 billion through the handover of American International Assurance Co and $9 billion with the transfer of American Life Insurance Co. The moves lower principal borrowing on a Fed credit line to $17 billion, New York-based AIG said in a statement.
AIG plans to sell AIA and Alico to rivals or private-equity buyers or in initial public offerings “depending on market conditions,” the insurer said. The company said it will take a $5.7 billion charge in the fourth quarter tied to a reduction in the credit line, in addition to a previously disclosed $1.4 billion accounting expense linked to the sale of a Taiwan unit.
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