Report: AIG in May U.S. auto sell the unit of Zurich

 

Friday, Apr 17,2009, 9:52:18 PM   Click:

CHARLOTTE, NC - Insurer American International Group Inc. in May announced an agreement to sell his car to compete with the insurance unit of Zurich Financial Services AG, according to a report.

The sale of 21st Century Insurance is expected Thursday, the Wall Street Journal said, citing people familiar with the subject.

The price to pay for auto insurance companies could be between $ 1.5 billion and 2 billion dollars according to the report. The transaction could strengthen the hand of Zurich in the U.S. auto insurance. Zurich owns Los Angeles-based insurer Farmers Group Inc

A spokesman for AIG declined to comment.

If AIG sells the device, it could be the largest insurance giant face was able to accept since announcing plans to sell assets to help repay the government.

New York-based AIG has received $ 182.5 billion in financial support from the government since September. The company is selling a number of business units to repay a portion of the loan.

On Thursday, AIG said it completed the sale of part of its management of AIG Private Bank Ltd. in Aabar Investments PJSC of Abu Dhabi.

Under the agreement, the United Arab Emirates-based investment company paid about $ 253 million and took about $ 55 million of intra-company loans outstanding at AIG Private Bank.

The agreement, announced in December, is the fourth of AIG closed down over the past three weeks and one of 10 agreements for the sale of assets has reached in recent months.

Shares of AIG rose 10 cents, or 6.3 percent, to $ 1.70 in trading Thursday morning.