Search

Following a government investigation that found deficiencies in its reporting, Chartis Inc. - the property-and-casualty insurance unit of American International Group Inc. - said it will improve the disclosure of guarantees given to other AIG units.

Surpassing expectations, American International Group Inc. raised $20.5 billion by selling two thirds of its Asian life insurance unit AIA Group Ltd. at a Hong Kong IPO. AIG is also in the process of selling its American Life Insurance Co. to MetLife Inc for $15.5 billion.

Citing lack of financial backing for the deal and the buyers' lack of experience in the sector, Taiwan blocked the sale of American International Group Inc.'s Taiwanese life-insurance unit - Nan Shan Life Insurance Co. - to a group of Hong Kong investors for $2.15 billion.

American International Group Inc.'s airplane-leasing unit - International Lease Finance Corp. - completed a $4.4-billion debt sale to investors and will use the proceeds to repay a $3.9-billion U.S. government loan ahead of schedule.

American International Group Inc. may be preparing to hold its first debt offering since its bailout by the U.S. government in 2008. A successful offering would signal the company's ability to raise funds from private sources to exit from government ownership.

American International Group Inc. will sell 80% of its money-losing and debt-ridden unit American General to Fortress Investment Group L.L.C. for $200 million. AIG will post a $1.94 billion pretax loss from the sale.

Prudential PLC had agreed to pay $25 billion in cash, $2 billion in preferred shares, and $8.5 billion in stock and equity-linked securities to buy American International Assurance Ltd. from American International Group Inc. (AIG), but Prudential and AIG are discussing possible changes to the original agreement - possibly decreasing the cash portion of the deal.

American International Group Inc. (AIG) is expected to announce the sale of its unit American Life Insurance Co. - Alico - to MetLife Inc. for about $15 billion, $6.8 billion in cash and $8.2 billion in MetLife common and preferred shares. Once the sale is completed, AIG will hold a 23% stake in MetLife.

American International Group Inc. is expected to sell its life-insurance business in Asia, American International Assurance Ltd., to Prudential PLC for $35.5 billion. Separately, AIG is negotiating the sale of Alico - with operations in Japan and Europe - to MetLife Inc for $15 billion. Some of the proceeds from both transactions will be used to pay back part of the $130 billion in loans AIG received from the U.S. government.

Byline: SERENA NG; WALL STREET JOURNAL STAFF Some of the billions of dollars that the U.S. government paid to bail out American International Group Inc. stand to benefit hedge funds [...]

After the downgrade of the company's credit ratings, insurance giant American International Group Inc. may have to raise $14.5 billion to meet its creditors' possible demand for additional collateral. It is estimated the company may need to raise as much as $75 billion in fresh funding to get through its present cash shortage. Most of AIG's exposure stems from credit default swaps tied to Wall Street firms that may not want to demand an immediate increase of collateral in order to avert a market panic. AIG continues to negotiate with the U.S. government for emergency funding. On Monday, the company's stock dropped 61% or $7.38 to close at $4.76 on the New York Stock Exchange.

The U.S. financial market is in turmoil as recent developments within Lehman Brothers Holdings Inc., Merrill Lynch & Co, and insurance giant American International Group Inc. raise doubts about the future of these companies and shake investors' confidence. Lehman is actively seeking a buyer but faces hurdles as prospective suitors walk away because the U.S. government refuses to cover any losses resulting from the acquisition. The company faces possible liquidation and may file for Chapter 11 protection. Bank of America has bought Merrill Lynch for $50 billion or $29 per share. AIG is trying to raise $40 billion to prevent a credit-rating downgrade and has appealed for emergency funding to the U.S. Federal Reserve. In related news, 10 financial institutions are planning to create a $70-billion fund to finance the possible purchase of liquidated assets.

AIG Rail Services Inc., a Chicago-based railroad-car company, is up for sale by its owner, American International Group Inc. The company is valued at about $660 million, with some 10,000 rail-cars owned and leased.

Recently it was reported that the chief executive officer of American International Group Inc., Robert Benmosche, was diagnosed with cancer and has begun aggressive chemotherapy. The company's board has decided that, should Benmosche find it difficult at some point to continue his duties, then Chairman Robert S. Miller will step in as interim chief executive.

Robert H. Benmosche, the chief executive officer of insurance giant American International Group Inc., has been diagnosed with cancer, and is undergoing chemotherapy. The type of cancer has not been disclosed.

Over $120 billion of government financing of American International Group Inc. is outstanding, and the government plans to divest itself of its holding in the insurance giant, ending the bailout sooner than expected. The deal would involve the United States Department of the Treasury selling to private investors some $50 billion of shares, a move that could take months or even years and could be fraught with difficulty.

Fortress Investment Group is acquiring 80% of American General Finance Corp. from American International Group Inc. for under $200 million. Fortress will also take a $1.9 billion pretax loss in the third quarter as a result of the sale.

American International Group Inc. almost collapsed two years ago after The Goldman Sachs Group Inc. made collateral demands. The question of how it set prices on collateralized debt obligations is one that it gives in a report to the Financial Crisis Inquiry Commission.

American International Group Inc.'s Asian subsidiary American International Assurance Company Ltd. is to be headed by new chief executive Mark Tucker, who is formerly the chief executive officer of Prudential PLC, the British insurance company. The company is planning an initial public offering soon.

A lawsuit going back to 2005 against American International Group Inc. on charges of insurance bid-rigging, as well as inflating reserves and stock price, is to be settled with a payment of $725 million. The case began after ex-New York Attorney General Eliot Spitzer made the accusations.