Business News

Federal loan prompts AIG sale

Published: Oct. 3, 2008 at 2:44 PM
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Employees enter and exite the American International Group building in the financial district on September 17, 2008 in New York City. (UPI Photo/Monika Graff) | Enlarge

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NEW YORK, Oct. 3 (UPI) -- Insurance giant American International Group said Friday much of the business was for sale in order to pay off a huge debt to the U.S. government.

The company said it would keep its U.S. and foreign property and casualty insurance businesses and its foreign life insurance operations, CNNMoney reported Friday.

Everything else was up for grabs, Chief Executive Officer Edward Liddy said in a conference call.

AIG is digging itself out from under an $85 billion two-year federal loan the company accepted in mid-September to shore up its collapsing balance sheets.

"We fully expect to emerge from this with a capital structure that's fit to fight," Liddy said.

AIG's U.S. property and casualty insurance generated $40 billion in revenue in 2007, CNNMoney reported.