AIG To Sell Several Business Units To Repay Fed Loan

Charlotte, NC (AHN) - American International Group announced Friday many of its business units are up for sale and they have been contacted by numerous parties regarding possible deals.

The insurance giant is looking to keep its casualty and property insurance businesses, both foreign and domestic. The American International Assurance unit is also said to be safe. Outside of that, any other unit would be considered in a sale.

The units AIG is seeking to sell are overseas life insurance businesses, domestic life and retirement services businesses, the American General Finance unit, as well as their mortgage insurance operations.

The company's International Lease Finance Corp., an aircraft leasing company, is also up for sale and had $44 billion in assets at the end of last quarter.

"Our goal is to emerge from this process in a timely fashion as a smaller, but more nimble company that is solidly profitable and has attractive, long-term growth prospects," CEO Edward Liddy said in his first call with investors and analysts, according to the Associated Press. "I think what the Federal Reserve has provided us has been very generous and we are going to do everything we can, not to have to go back to them," he added.

To date, AIG has drawn $61 billion of the $85 billion total available from the Fed credit facility.