AIG eyes sale of car insurer to Swiss company - report
New York - American International Group (AIG), working to repay a government bailout, is eyeing the sale of its car insurance unit to the Swiss company Zurich Financial Services, the financial agency Bloomberg reported Wednesday.
The agency, citing what it said were sources familiar with developments, said AIG was looking to sell 21st Century Insurance in which would be the company's biggest divestiture since last September's government bail-out lifeline of 60 billion dollars.
So far, AIG restructuring chief Paula Reynolds has made divestment deals worth 2.3 billion dollars as the insurance giant seeks to unload assets. Bloomberg said as of the end of 2008, AIG had made use of 38.9 billion dollars of the government credit line.
AIG, hit badly by the crisis in the US housing market, has posted net losses of 43 billion dollars over the past four quarters.
California-based 21st Century, is a seller of auto insurance policies by telephone and the internet. AIG has been majority shareholder in 21st Century since 1998 and sole owner since 2007, with the company valued at the time at 1.9 billion dollars. (dpa)