Tags: AIG | bailout | Greenberg | sales

AIG Jewels Endure at Rivals After $79 Billion of Asset Sales

Friday, 16 May 2014 09:41 AM

American International Group Inc., built by Maurice “Hank” Greenberg into the world’s largest insurer, has shrunk by half through a series of asset sales that ended this week with the divestiture of a plane-leasing unit.

The contraction began in 2008, the year AIG needed a U.S. bailout, and included the sale of units from Hong Kong to Israel, and real estate from New York to Tokyo. The deals helped narrow the company’s focus and generated about $79 billion for AIG, which returned the last of the taxpayer funds in 2012.

“They sold off a great many of the crown jewels,” Greenberg, who led AIG for almost four decades through 2005, said in a 2011 interview on Bloomberg Television. “How long is it going to take to rebuild?”

The insurer’s market value is about $76 billion, compared with $148 billion at the end of 2007. The employee count is down 45 percent in the six years ended Dec. 31 to 64,000.

Investment banks, buyout firms and insurers were among those who benefited from New York-based AIG’s distress. MetLife Inc., the largest U.S. life insurer, paid more than $16 billion in 2010 for American Life Insurance Co. Fortress Investment Group LLC paid $125 million that year for most of AIG’s subprime lender. Fortress’s stake in the business, now named Springleaf Holdings Inc., is valued at about $1.75 billion, according to data compiled by Bloomberg.

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American International Group Inc., built by Maurice "Hank" Greenberg into the world's largest insurer, has shrunk by half through a series of asset sales that ended this week with the divestiture of a plane-leasing unit.
AIG, bailout, Greenberg, sales
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2014-41-16
Friday, 16 May 2014 09:41 AM
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