AIG to put AIU Holdings into special vehicle

NEW YORK, April 21 (Reuters) - American International Group Inc said on Tuesday it would put AIU Holdings, the holding company for its property and casualty companies, into a special purpose vehicle in preparation for selling at least part of it.
AIG said in a statement that AIU would hold its commercial insurance, foreign general insurance and private client group units, and that AIG would get preferred and common interests in the vehicle.
Plans to separate AIU Holdings from AIG were announced on March 2, as AIG recorded a $61.7 billion quarterly loss, the largest in corporate history. AIG has said that it plans to sell part or all of AIU in a public offering.
Once the largest insurance company in the world, AIG is restructuring after receiving some $180 billion in U.S. government financial support.
AIG said in the statement that it would buy AIU Holdings' equity interests in aircraft lessor International Lease Finance Corp, mortgage insurance unit United Guaranty Corp and reinsurer Transatlantic Holdings Inc, in which AIG owns a stake.
After the separation, AIU is to have its own board of directors, management team and brand, AIG said.
AIG has said that it would put its international life operations into special entities, and sell some assets.
Part of the financial support AIG has received from the government is a $60 billion credit facility, which is about two-thirds tapped.
The insurer, based in New York, has been pursuing asset sales to repay part of the federal debt.
AIG closed up 13.18 percent, or 17 cents, at $1.46 on the New York Stock Exchange. The shares are off a 52-week high of $49.50 set last May, according to Reuters data.