AIG Closes on Sale of Mexican Consumer Finance Business

American International Group Inc. has completed its sale of its consumer finance operations in Mexico, the company said.

Terms of the transaction were not disclosed.

AIG Universal, S.A. de C.V., SOFOM E.N.R., and Markcenter Services, S. de R.L. de C.V, were sold to a consortium of companies headed by Afirme Grupo Financiero and Consorcio Villacero, AIG said in a statement.

AIG Universal, launched in 2005, offers personal loans and third-party insurance through a network of 50 branches serving about 50,000 clients in 12 states in the central and northern regions of Mexico, AIG said.

AIG has been selling assets to repay federal aid as it restructures its businesses under a federal rescue program that has grown to up to $182.5 billion in loans and other assistance since September, when it nearly fell into bankruptcy because of credit derivative investments.

The sale of the Mexican businesses was announced last month (BestWire, June 24, 2009).

Most AIG insurance companies currently have a Best?s Financial Strength Rating of A (Excellent) with a negative outlook.

Shares of AIG (NYSE: AIG) were trading at $13.45 on the morning of July 20, down 0.5% from the previous close.

(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)