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American International Group Inc. (AIG) is seeking to make acquisitions. However, the company is not seeking to purchase a securities company.

Marsh and McLennan Companies Inc. has further consolidated its dominance in the global insurance-broking business through a buy of Sedgwick Group PLC for around $2 billion in cash. Marsh and McLennan, the world's largest insurance broker with $6 billion in annual revenue, acts as a intermediary between buyers of insurance and property-casualty insurers. Marsh and McLennan reported it will purchase the entire shelf capital of Sedgwick, the third-largest insurance broker in the world. Sedgwick chairman Sax Riley said the firms have strengths that compliment each other that will meet the need for providing services in all parts of the world. Takeover and merger of the operations are expected the officials from both companies to boost revenue and earnings by 2000.

American International Group (AIG) has agreed to acquire annuity company SunAmerica in a stock transaction worth $18 billion. The agreement provides that SunAmerica investors will get 0.855 shares of AIG stock for every SunAmerica share. The exchange values each SunAmerica share at $74.80 each. The selling price of SunAmerica amounts to approximately six times its book value of $13. Maurice Greenberg, chairman of AIG, said that SunAmerica's growth, culture, creativeness and performance record attracted him to the company.