AIG and U.S. Set Faster, Riskier Exit Path
Greenberg said the asset sales reduced AIG’s diversification and added risk, especially because property-casualty business is volatile.
“If I had the choice, I would sell the domestic life business rather than the Asian business (AIA),” Greenberg said.
Benmosche said AIG may at some point consider a partial IPO of other businesses, such as aircraft lessor International Lease Finance Corp and mortgage insurer United Guaranty. It also would be open to a sale of the units at the right time and price.
AIG also plans to absorb whatever is left at AIG Financial Products, the unit behind its near collapse, into the parent company and further reduce the risk, Benmosche said.
“The question becomes more about how do we get AIG to have access to the capital markets and how do we begin to show AIG as a strong investment-grade company that’s single A or better,” Benmosche said.
AIG’s shares have risen 30 percent this year, compared with an 8 percent rise in the S&P Insurance index.
(Reporting by Paritosh Bansal; Additional reporting by David Lawder and Dan Wilchins; Editing by John Wallace and Carol Bishopric)
