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Entries in AIG (6)


Int. Insurance Links 16.11.09 

Aviva remains upbeat despite 25% drop in UK sales

A loss of confidence in the economy among older customers helped knock UK sales at life assurer Aviva by 25%, according to the company's third-quarter management statement.

Customers close to retirement delayed purchasing annuities, while pension savers either reduced or stopped their monthly payments, hitting the company's core pensions and annuity businesses over the first three months of the year.


RBS outlines assets insured by taxpayer

Royal Bank of Scotland has used up nearly half of the £60bn buffer available before it is able to hand 90% of its losses on toxic assets to the taxpayer through the asset protection scheme. Stephen Hester, chief executive of the bank, insisted today that RBS should not need to call upon the insurance for its £282bn of troubled assets through the APS as its impairment charge was levelling off.

The bank has used £27bn of the buffer and today published information about the assets being insured by taxpayer. Some £120bn are in the non-core division created by Hester to hold businesses being sold, while £75bn are contained within the investment bank. In terms of the type of loans, just £15bn are residential mortgages while £51bn are loans connected to commercial property.

RBS admits EU sale plan

Royal Bank of Scotland has admitted for the first time that the European Union is forcing it to sell off more assets than it planned.

RBS told the City this morning that it hopes to have concluded a deal with the EU over its state aid support by the end of this week. The price of this deal, it warned, is that it will have to sell parts of its operations which it hoped to hang on to after it was restructured.




Flood victims suffer as insurance costs rise

Flood victims continue to face spiralling costs for home insurance as excesses for flood cover rise to levels that are making their properties virtually impossible to sell.

Many have invested thousands to protect their homes from flooding, but these efforts are rarely rewarded by insurers.

"People are coming to us with huge premiums and flood excesses of up to £30,000, which is as good as having no insurance at all and makes their property virtually worthless," says Mary Dhonau, chief executive of the National Flood Forum, a charity that advises flood victims. "The problem has got steadily worse over the past year and we are now being overwhelmed by calls from homeowners who have spent a huge amount protecting their property, but are still being charged ridiculous premiums or refused cover altogether."


UNIQA To Increase Stake In Albanian Insurance Company To 68.7%

Austria-based UNIQA Group is all set to acquire a further 23% of the share capital in Albanian insurance company, Sigal. The move would increase its share in Sigal and its subsidiaries in Kosovo and Macedonia, to around 68.7%.

The relevant agreements with the former shareholders were signed on November 11, 2009. However, the 13% holding of Albanian American Enterprise Fund (AAEF) in Sigal will remain unchanged. Additionally, UNIQA also has finalised options to purchase the remaining shares over the next few years.


Willis Names New CEO For Dutch Business

Willis Europe, a division of Willis Group Holdings, has appointed Niek Post as CEO of its Dutch operations, effective immediately. Based in Amsterdam, Mr. Post will report to Adam Garrard, CEO of Willis Continental Europe.

Mr. Post, who has more than 25 years of experience in the Dutch insurance market, joins Willis from Aon Netherlands where he was most recently responsible for strategic global client relationships, with a particular focus on financial institutions.


The Hartford Enhances Cyber Liability Policy (new product?)

The Hartford Financial Services Group (The Hartford) has introduced its enhanced flagship cyber liability policy to address emerging online reputation and privacy exposures. Drew Bartkiewicz, vice president of cyber and new media risk at The Hartford, said: “We’re seeing widespread adoption of social media technologies among businesses in virtually every industry. At the same time, data is becoming increasingly regulated, which is creating new exposures, particularly in the areas of data privacy and reputational risk.”

With CyberChoice 2.09, The Hartford now offers broader coverage for data privacy breaches and social media liability exposures, such as online defamation, advertising, libel and slander, by employees or casual users of a company’s web site.


AAA NCNU Selects Exigen Insurance Solutions

Exigen Insurance Solutions, a provider of insurance core systems, has announced that AAA Northern California, Nevada and Utah has selected Exigen Insurance Solutions' underwriting, policy administration and billing solutions for auto, homeowners and all other personal lines of business for its operations spanning 18 states.

The Exigen Suite applications PolicyCore and BillingCore will allow AAA NCNU to rapidly expand and enhance its insurance product offerings and customer service to many members from a technology platform that supports long-term business growth.


Assurance Teams Up With RiskProNet International

Assurance Limited, a full-service insurance agency in Las Vegas, has joined RiskProNet International, a network of 24 independent insurance brokers in North America. Reportedly, RiskProNet members in 2008 had combined revenues in excess of $688 million and over $6.5 billion in written premium.

Each partner is an equal owner in the association, which gives its members the geographic diversity and shared knowledge base to serve clients with national, international or specialised exposures to risk. Through its alliances with brokers around the world, RiskProNet members can serve clients globally.


Cooper Gay Purchases Reinsurance Broker

Cooper Gay Holdings, an independent insurance and reinsurance broker, has acquired majority of the shareholding in, a Florida-based specialist reinsurance broker. focuses on treaty and facultative reinsurance solutions, primarily for the Argentine market. The company was set up in 2006 by Guillermo Pastore.

Mr Pastore has over 20 years’ experience in the Latin American reinsurance sector and was formerly COO of EW Blanch and Benfield Greig in Argentina. Mr Pastore will continue as CEO and will drive expansion in support of Cooper Gay’s strategy for the region.


Willis Group To Expand Its Commercial Network Internationally

Willis Group Holdings, an insurance broker, has planed to expand its Willis Commercial Network business model for serving independent brokers from its base in the UK to countries around the world. The company has appointed Mark Radburn as CEO of Willis Networks International to oversee the expansion. Mr Radburn, will report to Sarah Turvill, CEO, Willis International.

Mr Radburn joined Willis from JLT in 1996 as Sales & Marketing Director for the Willis UK & Ireland central region. He was appointed as managing director in 2002.


Farmers Life Appoints New President, CEO

Farmers Group's CEO, Robert Woudstra, and Zurich Financial Services' CEO of Global Life Americas, Kevin Hogan have announced the appointment of Thomas White as president and CEO of Farmers Life, and executive vice president of Farmers Group. Mr White succeeds Paul Patsis, who recently assumed the role of president of market management and executive vice president of Farmers Group.

Mr. White joins Farmers from AIG in Asia, where he was president and CEO of AIA Thailand, and senior regional life division executive responsible for Vietnam and Indonesia.


Concordis Group Acquires Concordis Insurance

Concordis Group has finalised the acquisition of Concordis Insurance. Concordis Insurance provides a variety of custom-tailored insurance solutions to captive programs, risk retention groups, self-insured clients, insurance companies and both public and private entities.

Trent Sommerville, CEO of Concordis Group, stated, "We are thrilled to finalise this great business opportunity. This acquisition is a tremendous next step for Concordis as it will enable us to bring a greater breadth of services to our customers."


Hillross To Acquire Rabo Financial Advisors

Hillross Financial Services (Hillross), a wealth management firm which is wholly owned by AMP, has agreed to acquire Rabo Financial Advisors, the financial planning arm of Rabobank Australia & New Zealand.

As part of the transaction, Hillross and Rabobank have also entered into an ongoing alliance where Hillross will be the exclusive provider of financial planning advice to Rabobank’s clients, through a referral agreement between the two companies.


European liability insurers braced for claims

12 October 2009

D&O and E&O insurers in Europe expect to fare better than their American counterparts in the financial crisis. But the threat of increasing claims still looms.

After more than a year of plummeting share prices, widely-publicised defaults and international fraud scandals, liability insurers across Europe have plenty of reasons to worry. They may not expect to be hit as badly as their North American peers, but the same question will be on their minds: how much is it all going to cost? So far, the much-anticipated surge of liability claims from the financial crisis has not materialised. But insurers across Europe have reported an increase in notifications, many of which are related to the crisis.

“There are figures being suggested by some insurers that they’re seeing up to three times the number of notifications,” says Adam Codrington, executive director in Aon’s directors’ and officers’ liability (D&O) team. “We are certainly seeing more notifications to D&O contracts on commercial accounts, but it’s an increase in frequency rather than severity at the moment.”


Dutch Delta eyes ING, ASR assets

06 November 2009

Dutch insurer, Delta Lloyd, may purchase the insurance assets of ING Group and ASR Verzekeringen, CEO Niek Hoek said Thursday at an analyst meeting, The Wall Street Journal reports.

Dutch insurer, Delta Lloyd, may purchase the insurance assets of ING Group and ASR Verzekeringen, CEO...

General info on interested buyers of AIG's insurance units




Climate change to cost insurers: ABI

04 November 2009

Property insurance could become more expensive and harder to obtain as a result of global climate change, according to a new report published by the Association of British Insurers. Property insurance could become more expensive and harder to obtain as a result of global climate change, according to a new report published by the Association of British Insurers (ABI).

The ABI’s report The Financial Risks of Climate Change – which was produced by risk modelling firm AIR Worldwide – looked at the financial implications of the widely predicted temperature increases of two, four...


Spectre of new regulation looms for insurers

11 November 2009

New financial services regulation could be detrimental to insurers if not handled properly, a panel of insurance and reinsurance executives warned at Reactions’ Global Insurance Conference in Zurich, Switzerland on November 10.

New financial services regulation could be detrimental to insurers if not handled properly, a panel of insurance and reinsurance executives warned at Reactions’ Global Insurance Conference in Zurich, Switzerland on November 10. The panel, which was chaired by Reactions’ editor Michael Loney, included Paolo de Martin, Scor’s chief financial officer; James Illingworth, group chief risk officer of Lloyd’s insurer Amlin; Patrick Liedtke, secretary general and managing director of The Geneva Association; Mark Byrne, chairman and founder of Flagstone Re; and Costas Miranthis, CEO of PartnerRe Europe.

Liedtke kicked off the discussion by referring to a letter his association sent to the G-20 last week, urging it to take into account the specific nature of insurance and reinsurance when devising a new regulatory framework.

“If you look at the scope of this crisis, you can draw the conclusion that insurance as a system actually worked pretty well. This is...


The Hartford Introduces Benefits Solution


By Staff Reporter

To offer necessary income protection

The Hartford Financial Services Group has unveiled a total voluntary benefits solution for employers with one thousand or more employees.This new system of people, processes and technology for voluntary group life and disability insurance is the outcome of significant investments by The Hartford.

John Gallant, vice president of service operations for The Hartford’s Group Benefits Division, said: “We understand employers are stretched to their limits in today’s tough economy and are turning to voluntary benefits as an affordable way to offer important income protection to their employees. Our voluntary services can be customised to deliver a flexible benefit program to meet the unique needs of today’s employers.”


DUAL To Enhance Focus Products Suite


Appointed new member to its DUAL Focus team

DUAL Corporate Risks, a directors & officers and professional indemnity underwriting agency for mid-market companies, has appointed Liz Hanlon to its DUAL Focus team. The company claims that its DUAL Focus provides specialist insurance solutions for complex financial institution based risks.


HUB Acquires Mones & Associates Insurance Brokers From Aviva Canada

Transaction to expand Hub's presence in seven new Canadian locations

Hub International has acquired Mones & Associates Insurance Brokers (Mones), a personal and commercial insurance brokers company in Canada, from Aviva Canada. Mones also operates under the name of Arctic Insurance Brokers in select markets. The company said that as a result of this acquisition, it will expand its operations to seven new locations in Canada that include, Edmonton, Calgary, Saskatoon, Prince Albert, Iqaluit, Whitehorse and Yellowknife.


International Excess Opens Agriculture Business Insurance Unit


By Staff Reporter

To focus on crop insurance and farm and livestock insurance

US-based insurance broker, International Excess has opend new Agribusiness division which is expected to focus on crop insurance and farm and livestock insurance. The company has appointed Chuck Gabel as divisional vice president of International Excess Agribusiness. He has specialized in crop insurance and farm insurance for more than 20 years. Mr. Gabel said: "Insurance for Agribusiness has become my full-time passion and I'm working to give the farming industry the protection they deserve."


Marsh & Mclennan Agency Acquires Insurance Alliance

As part of an expansion strategy to cater to the needs of small-to-mid-sized companies across the country

Marsh & McLennan Agency, a subsidiary of insurance broker, Marsh, has acquired Texas-based Insurance Alliance, an independent insurance agency, as part of its expansion strategy. The move is intended to cater to the needs of small-to-mid-sized companies across the country.

Insurance Alliance has annual revenue of $15m and serves over 1,500 commercial clients located primarily in Texas and throughout the Southwest. The firm has specialist teams serving clients in construction, surety, energy and marine, professional services, general property and casualty, and employee benefits.


FPIC Insurance Completes Acquisition Of Advocate, MD Financial


By Staff Reporter

Expected to leverage the strengths of both the organizations

First Professionals Insurance, a subsidiary of FPIC Insurance Group, a provider of medical professional liability insurance for healthcare firms, has completed the acquisition of all of the outstanding capital stock of Advocate, MD and its subsidiaries.

Under the terms of the previously announced agreement, FPIC paid total consideration of $33.6m at closing, and may pay up to $12m in additional consideration depending on the performance of Advocate, MD during the two-year period following closing. In connection with the transaction, FPIC also retired all of Advocate MD’s outstanding bank debt, totaling $9m.


ACE Expands Structured Reinsurance Solutions


By Staff Reporter

Creates a new role of senior underwriter for structured risks

ACE Tempest Re Europe has appointed David Mann in the newly created role of senior underwriter for structured risks. His appointment is in line with the company's expansion of its product offering across its reinsurance division. The ACE Tempest Re Group oversees the reinsurance operations of the ACE Group of Companies.

Mr. Mann will be responsible for underwriting non-traditional bespoke reinsurance solutions across property, casualty and specialty lines. He will report to Andreas Lewin, managing director, ACE Tempest Re Europe and will be based in its London office. Mr. Mann joins ACE Tempest Re from Aspen Insurance, Bermuda, where he was most recently senior underwriter for structured risks.



Int. Insurance links 1.9.09

RSA Hires Advisers for $1 Billion Rights Issue, Telegraph Says

Aug. 30 (Bloomberg) -- RSA Insurance Group Plc is considering a rights offer to raise $1 billion, the Sunday Telegraph said, citing unidentified people close to the company. RSA has appointed JPMorgan Chase & Co. and Merrill Lynch & Co. to prepare an offer, the newspaper said. RSA spokesman Jon Sellors in London declined to comment when contacted by Bloomberg News today.


AIG May Get Less Than $2 Billion in Taiwan Unit Sale (Update1)

Bidders for American International Group Inc.’s Taiwanese life insurance unit may offer less than the U.S. insurer’s $2 billion target, three people with knowledge of the matter said.

A group led by Primus Financial Holdings Ltd. may bid between $1.2 billion and $1.4 billion for AIG’s Taipei-based Nan Shan Life Insurance Co. today, one of the people said, declining to be identified. Fubon Financial Holding Co. plans a $1 billion offer, said another of the people. Cathay Financial Holding Co. may bid at least $1.5 billion, a third person familiar with the situation said.


Aviva Offers Insurance Cover To Business Super Members

Aviva has announced its offering of automatic life insurance coverage to over 18,000 business super members - reported Financial Standard.

The business super members require $1,500 in superannuation savings to receive the automatic cover. Medical history is not needed to avail the cover. Around 9,700 members will be getting death and total and permanent disability to age 65, and 8,300 members will receive death cover only.


HSBC Forays Into China's Life Insurance Market

HSBC Life Insurance Company, a joint venture of HSBC and Beijing-based National Trust, has launched its operations in Shanghai – reported Xinhuanet. It has been reported that in 2008, the total life insuance premiums in China was up by 48% compared to the previous year, second only to Japan in Asia.


AEGON Sony Life Insurance Gets Final Approval To Launch Business In Japan

The life insurance joint venture between AEGON and Sony Life has obtained final approval from the Japanese regulatory authorities to launch business operations later this year. The 50-50 joint venture, AEGON Sony Life Insurance (ASLI), is expected to initially focus on the sale of variable annuity products which will be distributed through Sony Life's 'Lifeplanner' sales employees, as well as banks and other financial institutions.


Co-operative Insurance Launches Sector Specific Business Insurance

The Co-operative Insurance has launched a new range of sector-specific, business insurance products – reported The company has said that the insurance products are targeted at primarily small businesses that account for 74% of all businesses in the UK.


EVS Provides Security To RBC's Online Insurance Program

Royal Bank of Canada (RBC) has selected Electronic Verification Systems (EVS as the primary identity verification provider for its online insurance program. Royal Bank of Canada, a financial services and insurance provider, is a new addition to EVS's existing list of identity verification clients.


AIG's Nan Shan Life Receives Low Bids

AIG's plan to sell its Taiwan unit has taken a blow as three bidders offered less than $1.5 billion each for the unit, too less than the $2 billion expected by AIG - reported Reuters.


RPT-IPO VIEW-Surge of filings signals busy autumn for IPOs (general US)

"Nobody buys an IPO by looking in the rearview mirror -- they are looking out at the next one to three years," he said. Adding to the tally of potential IPOs in the fall, a number of companies have recently updated existing filings, significantly changing the amounts of money they are applying to raise.

For example, Rio Tinto Plc's (RIO.L) (RIO.AX) U.S. coal business, Cloud Peak Energy Inc, filed a new prospectus in early August, doubling the planned size of its IPO to $500 million.


UPDATE 1-AIG weighing many options for ILFC -sources

NEW YORK, Aug 29 (Reuters) - American International Group Inc (AIG.N) and Steven Udvar-Hazy, head of its International Lease Finance Corp unit, are weighing several options for the aircraft leasing business, including breaking up the company, two sources familiar with the matter said on Saturday.

The alternatives include the possibility of carving out a new, independent company, the sources said, but added that discussions were in preliminary stages and nothing had been determined yet.


CNinsure Q2 Net Revenue Up 33%

CNinsure, an independent insurance intermediary company operating in China, has revealed its unaudited financial results for the second quarter and the first half ended June 30, 2009.

The company posted total net revenue of $41.8m for the second quarter of 2009, representing an increase of 33% from the corresponding period of 2008. Income from operations is $12.1m, representing an increase of 16.5% from same period of previous year.


Young motorists unaware that insurance is legally required (UK)

One in ten young drivers aren’t aware that car insurance is a legal requirement, while one in five are taking to the roads without insurance. A quarter of a million 17-20 year olds are getting behind the wheel without insurance cover, according to new figures from the Motor Insurance Bureau (MIB).


JSW Insurance offers dedicated letting agent package

JSW Insurance Services Ltd (JSW) has opened a new division ( to cater solely to the needs of letting agents and landlords including a complete insurance package created for letting agents.

The division consists of all the insurance aspects letting agents need, in one location.


Omega posts drop in profits

Omega Insurance Holdings this week posted a 5.5% drop in first half profits. The Bermuda-based insurer reported net income down to $20.6 million from $21.8 million in the year ago period.

The fall in profit came despite a rise in gross premiums written, up 1% from $185.9 million to $187.5 million, and an 1.2 percentage point improvement in combined ratio, down to 82.5%.


"XL Teams Seek to Get an Early Jump on Catastrophes"

For XL Insurance, one of the lessons of Hurricane Katrina was the importance of getting an early sense of the likely extent of developing catastrophes.



Int. Insurance links 4.8.09

Munich RE (Q2 results)


Munich Re, the world’s largest reinsurance group, showed stronger profits in the second quarter in spite of a rise in claims arising from the financial crisis.

Credit reinsurance claims were among “an accumulation of major losses” from what Munich Re described as “man-made events” in the second quarter, a contrast to a period with comparatively few large claims from natural catastrophes.


Munich Re, the world’s biggest reinsurer, said second-quarter profit rose 14 percent on higher investment income and the sale of a stake in a U.K. insurer. Net income climbed to 691 million euros ($994 million), or 3.54 euros a share, from 606 million euros, or 2.97 euros, a year earlier, Munich Re said today. That beat the 618 million- euro median estimate of 15 analysts surveyed by Bloomberg.

Munich Re, led by Chief Executive Officer Nikolaus von Bomhard, 53, in March scrapped a profit target of 18 euros a share by 2010 as investment returns were hit by the financial crisis. While it didn’t give a target for full-year profit today, net investment income rose 38 percent to 2.19 billion euros, beating analysts’ median estimate of 1.69 billion euros.


Legal & General’s Operating Profit Beats Estimates

Legal & General Group Plc, the second-biggest U.K insurer by assets, said operating profit rose 12 percent, beating analyst estimates, as the company strengthened its balance sheet and cut costs.

Operating profit on a European Embedded Value basis rose to 657 million pounds ($1.11 billion), from 589 million pounds a year earlier, the London-based insurer said in a statement. That beat the 467 million-pound estimate of four analysts surveyed by Bloomberg. Legal & General’s net loss from ordinary activities widened to 71 million pounds from 14 million pounds.


Axa May Say First-Half Profit Fell on Life Insurance Business

Axa SA, Europe’s second-biggest insurer, may say first-half profit dropped on lower earnings at its life and savings business.

Net income probably fell 63 percent to 801 million euros ($1.15 billion) from 2.16 billion euros a year earlier, according to the median estimate of 11 analysts surveyed by Bloomberg News. Underlying profit may have dropped 32 percent to 1.88 billion euros as earnings from life and savings, Axa’s biggest division, fell 34 percent, according to the analysts.


L&G posts £143m loss

Legal & General has posted a loss for the first half of 2009 and almost halved its dividend as it hoards cash to see out the recession. The insurance firm said this morning it had made a pre-tax loss of £143m in the six months to 30 June, compared with a loss of £44m a year ago. The decline was partly due to large losses in various investment markets during the financial crisis, and an increase in credit default provisions.

Paying a dividend of 1.11p per share, down from 2.01p last year, will cost L&G £65m, leaving it with capital reserves of £1.9bn.


Global warming pushes up building insurance costs

Householders face higher building insurance premiums after a sharp increase in property damage blamed on climate change. A rise in insurance claims has been caused by flash floods and storms in areas of Britain previously immune to severe weather events.

The AA, which produces an insurance premium index monitoring costs, reports a 15% rise in claims in the first six months of 2009 over the same period in 2008 "in the number and cost of payments for buildings damaged by flash floods and storms in areas with little or no previous record of such claims."


Report calls for insurance tsar to educate public on financial risks

A far-reaching report on the future of Britain's insurance industry proposes the creation of a financial educational commissioner, or tsar, to alert the public about the need to save for their retirement, and insure against illness or unemployment.

The 65-page document paints a gloomy picture of a nation that saves too little, but which also faces new challenges as people live longer, and extreme weather becomes more frequent.


AIG's New Boss: Robert Benmosche

American International Group's (AIG) newly named CEO, Robert H. Benmosche, has lots of experience making deals and overseeing complex organizations. He's going to need it. Benmosche's selection lands him in one of the hottest seats in business, as AIG struggles to gain its footing after its near-bankruptcy and government rescue last fall.


Everest Re 2Q profit jumps 78 percent

HAMILTON, Bermuda (AP) -- Reinsurance company Everest Re Group Ltd. said Monday its second quarter net income jumped 78 percent as it increased its gross written premiums and a rebound in the stock market helped its portfolio.


FPIC Insurance To Acquire Advocate, MD Financial Group

FPIC Insurance Group (FPIC) and Advocate, MD Financial Group, have signed an agreement under which FPIC’s subsidiary, First Professionals Insurance will acquire Advocate, MD and its subsidiaries in an all cash transaction.


QBE Looking For Major Acquisitions In Australia

QBE Insurance Group is waiting for the right opportunity to strike mega deals in Australia, to avoid being margenlised by the growing importance of IAG, Suncorp and Allianz - reported Bloomberg.



Int. Insurance links 17.7.09

Allianz Says Insurers Will Be Hit by More Wind Storms in Europe

July 17 (Bloomberg) -- Insurers will be hit by a higher number of wind storm-related claims in Europe as a result of global warming, according to Allianz SE, Europe’s biggest insurer by market value.

“Global warming is happening and it’s here to stay,” Olaf Novak, head of risk management related to natural disasters at the Munich-based insurer, said in an interview in Munich. “It’s not so much the severity of wind storms in Europe but their rising frequency that worries us.”

Allianz, which generates about 84 percent of its premium income in property and casualty insurance in Europe, sees wind storms in its “home turf region” as the most important risk related to natural disasters, Novak said.

AIG Swaps May Take Decades to Expire Leaving a ‘Toxic Pool’

July 17 (Bloomberg) -- American International Group Inc.’s trading partners may force the insurer to bear the risk of losses on corporate loans and mortgages for years beyond the company’s expectations, complicating U.S. efforts to stabilize the firm, analysts said.

European banks including Societe Generale SA and BNP Paribas SA hold almost $200 billion in guarantees sold by New York-based AIG allowing the lenders to reduce the capital required for loss reserves. The firms may keep the contracts to hedge against declining assets rather than canceling them as AIG said it expects the banks to do, according to David Havens, managing director at investment bank Hexagon Securities LLC.


AIG Exploits Green Shoots to Offload Transatlantic Holdings Inc.

From Bloomberg ...

American International Group Inc., the insurer selling most of its stock in reinsurer Transatlantic Holdings Inc. to repay a federal bailout, raised about $988 million in the public offering.

AIG priced the 26-million share offering at $38 apiece, the New York-based insurer said late yesterday in a statement, which is 7.3 percent less than Transatlantic’s $41 closing price on the New York Stock Exchange yesterday. AIG held about 39 million shares, or 59 percent of Transatlantic, before the offering. “It’s a step in the right direction,” Bill Bergman, an analyst at Morningstar Inc. in Chicago, said in an interview. “Things are getting better in the capital markets and the outlook for selling some of their subsidiaries is improving.”

AIG was forced to scale back plans to sell units in their entirety as the recession eroded the value of insurance assets and made financing costlier for potential buyers. The company, which is seeking to repay loans within a government bailout valued at $182.5 billion, has disclosed deals raising $6.6 billion and said in March it will place two non-U.S. life insurers into trusts for eventual public offerings or sales.