AIG traces up huge enterprise sale
Insurance giant American International Group Inc. (AIG) announced today that it has responded to inquiries from companies considering acquiring an interest in the life and retirement (L&R) business that the insurer is looking to divest. Citing the words of AIG President Peter Zaffino (pictured) during a conference call with analysts, Bloomberg highlighted that AIG has received inquiries from parties involved in strategic direction and the potential purchase of the 19.9% stake in L. & R are interested.
“We are pleased with the interest and quality of potential partners in the life and retirement business,” said Zaffino, “and believe that selling a minority stake could be an attractive option for AIG, shareholders and other stakeholders.”
The comments follow the organization’s announcement last year that it would separate its L&R business from property and casualty insurance. Bloomberg reported that Zaffino, due to become CEO in March, has stated that the company is carefully weighing its options, including selling its stake to a third party or making a public offering by a minority. He stated that it is currently expected that an initial 19.9% sale of L&R will generate net proceeds, a portion of which can be used for further share buybacks.
He also stated that AIG’s efforts to prepare the L&R business for a divestment will not require additional equity due to the improvements the insurer has seen in its subsidiary equity positions over the past few years. The news follows AIG’s release of fourth quarter 2020 results earlier in the week, which highlighted how the insurer has been hit by disasters like COVID-19.