The American Insurance Group went nearly bankrupt last year at the peak of the financial crisis, and the Obama administration took the bold (rather risky) step of pumping in over 182 billion dollars into the company, and helped it to survive.
The AIG has since then been able to reduce the losses and is now in the process of identifying assets for sale over the next one year. The AIG has to repay the loans to the government, and hence it has now started to sell it’s Taiwan based Life Insurance Unit to a group of investors, for 2.15 billion dollars.
Primus Financial and China Strategic Holdings Limited are going to buy 98% stake of AIG in the Taipei based unit. The money is expected to help out AIG in repaying the loans slowly and also fund the working capital requirements. Only in the month of July 2009, AIG sold it’s auto unit for two billion dollars.
Over the coming months also, we can expect AIG to sell various arms in order to become financial viable. The first and foremost requirement for that is to repay the balance loan from the US government running currently at over 170 billion dollars.
And with the stock markets and the money markets limping back to normalcy, AIG will be able to get better rate for it’s assets.
AIG to sell Taiwan Life insurance unit
October - 13 - 2009 - Tuesday
