AIG Asset Sales Near $100 Billion With Mortgage Unit Exit: Tableby and
American International Group Inc. has divested more assets than most companies ever accumulate. AIG, still one of the largest insurers in the world, has sold dozens of units since 2008, first to repay a bailout and then to simplify the company and generate funds for share buybacks.
The buyers range from Aabar Investments PJSC to Zurich Insurance Group AG. And while AIG hasn’t disclosed the price of every transaction, Chief Executive Officer Peter Hancock said in November that the total was more than $90 billion. The figure climbed with subsequent deals, including this week’s agreement to sell a mortgage insurer for $3.4 billion. The table below lists key sales:
|Date announced||Unit||Buyer||Price (Millions)|
|Sept. 2008||London airport stake||Credit Suisse||n/a|
|Nov. 2008||Stake in Brazil venture||Unibanco||$820|
|Dec. 2008||AIG Private Bank Ltd.||Aabar||$308*|
|Dec. 2008||German insurance unit||Augur Capital||$26|
|Dec. 2008||Hartford Steam||Munich Re||$815*|
|Jan. 2009||Canadian life unit||Bank of Montreal||$263|
|Jan. 2009||Commodity index unity||UBS AG||$15**|
|Jan. 2009||Philippines units||East West Banking||$49|
|Feb. 2009||Thai units||Bank of Ayudhya||$45|
|March 2009||Taiwan securities unit||Bank of E. Asia||n/a|
|April 2009||21st Century Insurance||Zurich||$2,000*|
|May 2009||Japan headquarters||Nippon Life||$1,200|
|June 2009||Argentine finance units||Banco de Galicia||$69|
|June 2009||Transatlantic Holdings||Public offering||$1,136+~|
|June 2009||New York headquarters||Kumho||n/a|
|June 2009||Mexican finance||Afirme, Consorcio||n/a|
|June 2009||Russian bank||Banque PSA||n/a|
|June 2009||Taiwan credit-card unit||Far Eastern||n/a|
|June 2009||ForEx platform||BNP Paribas||n/a|
|July 2009||Life insurance finance||Wintrust||$680^|
|July 2009||Polish consumer finance||Banco Santander||n/a|
|Aug. 2009||Energy assets||Multiple buyers||$1,900^^|
|Aug. 2009||Hong Kong finance||China Construct.||$70|
|Aug. 2009||India information tech.||Mphasis||n/a|
|Sept. 2009||AIG Investments||Pacific Century||$500|
|Dec. 2009||Israeli mortgage insurer||Harel Insurance||$36|
|Jan. 2010||Canada mortgage insurer||Ontario Teachers||n/a|
|March 2010||Transatlantic Holdings||Public offering||$452~|
|April 2010||53 ILFC planes||Macquarie Group||$1,987|
|Aug. 2010||American General Finance||Fortress||$125|
|Sept. 2010||Star, Edison||Prudential Fin.||$4,800*|
|Oct. 2010||AIA Group Ltd.||Public offering||$20,500+~|
|Jan. 2011||Nan Shan Life||Ruen Chen||$2,160|
|April 2011||Railroad leasing||Perella Weinberg||n/a|
|July 2011||New Jersey apartments||Multiple buyers||$242|
|March 2012||AIA||Share sale||$6,000~|
|June 2012||Two runoff units||White Mountains||$35|
|Sept. 2012||AIA||Share sale||$2,000~|
|Dec. 2012||AIA||Share sale||$6,450~|
|Dec. 2013||Aircraft-leasing unit||AerCap||$7,600#|
|March 2015||PICC P&C||Public offering||$501~|
|June 2015||Consumer operation||Nan Shan||$158|
|September||Chartis Azerbaijan||Azre Tekrarsigorta||n/a|
|October||Central America operation||Assa Cia. de Seguros||n/a|
|December||PICC P&C||Public offering||$752~|
|January||AIG Advisor Group||Lightyear, PSP||n/a|
|April||PICC P&C||Public offering||$1,250~|
|August||United Guaranty||Arch Capital||$3,400|
|Total of disclosed sums:||$84,744|
Notes: Some company names have been abbreviated for space.
*Includes assumed debt.
**Excludes potential $135 million payment based on future performance.
+Includes sale of additional shares later in the month.
~AIG divested in multiple offerings.
^Excludes potential purchase of assets for $61.2 million.
^^Includes previously disclosed deals such as Spanish solar plants to HG Capital, interests in oil and gas contracts to an undisclosed buyer and stakes in gas storage and marketing ventures to Tenaska.
#Includes $3 billion in cash and 97.6 million AerCap shares. Valuation is based on AerCap’s May 13 closing price.