AIG sells Japan headquarters for $1.2 billion

 

Tuesday, May 12,2009, 11:47:26 AM   Click:

CHARLOTTE, NC - Embattled insurer American International Group Inc. said Monday the sale of its headquarters in Japan Nippon Life Insurance Co. for $ 1.2 billion in cash.

The transaction, which is among the largest sales in New York, AIG has to repay the U.S. government for its massive aid is planned for the second quarter.

The 35-year-old building is 15 stories and sits on the first property in central Tokyo near the Imperial Palace. The property consists of approximately one acre of land.

AIG in Japan, its roots date back to 1946 and the company is now the country's largest insurer.

The U.S. government provided AIG with a loan of $ 85 billion in September. As the worsening of market conditions and losses piled up to the insurer, the government revised and expanded its loan to AIG on several occasions. All loans now stands at nearly $ 180 billion, after being expanded in March when New York-based AIG reported a fourth quarter loss of $ 61.7 billion, the largest ever company quarterly loss in U.S. history.

During the first quarter, AIG said it lost $ 4.35 billion, or $ 1.98 per share, compared to $ 7.81 billion, or $ 3.09 per share, during the same quarter the last year.

As part of the series of loans, the government has also taken a stake of about 80 per cent in the insurance giant.

AIG shares fell 7 cents, or 3.5 percent, to $ 1.94 in trading Monday morning.