AIG sells private bank to Abu Dhabi firm for $254 million

American International Group (AIG), the insurer bailed out by the US goverment, agreed to sell a bank unit catering to wealthy clients in West Asia and the continent at large to Abu Dhabi-based Aabar Investments PJSC for 307 million Swiss francs ($254 million).

The payment for AIG Private Bank is subject to adjustments based on asset values when the deal closes, Aabar said today in a statement to the Abu Dhabi bourse. Aabar, which is majority-owned by Abu Dhabi’s state-controlled International Petroleum Investment, will also assume loans of as much as 100 million Swiss francs. AIG is selling businesses including life and retirement services and a plane lessor to repay a government loan that saved it from bankruptcy in September.