American International Group Inc., parent of Hartford Steam Boiler Inspection and Insurance Co., today said it has agreed to sell its wealth management arm AIG Private Bank Ltd. to Aabar Investments PJSC of Abu Dhabi.
Terms of the deal, which is part of the New York-based insurance company’s restructuring plans, were not disclosed.
Faced with a liquidity crunch, AIG said in October it would sell off a number of business units to pay off a $85 billion government loan. The insurer’s total government assistance has now risen to about $150 billion.
The company has not specifically disclosed the assets it would sell or the expected prices from the sales. However, AIG has said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and plans to retain an ownership interest in its foreign life insurance operations.
At 11 a.m., AIG shares traded at $1.87, down 14 cents, or 7 percent. (AP)
