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NEW YORK, Oct 3, 2008-- American International Group, Inc. (AIG) today indicated its intent to refocus the company on its core property and casualty insurance businesses, generate sufficient liquidity to repay the outstanding balance of its loan from the Federal Reserve Bank of New York and address its capital structure. AIG had drawn $61 billion on the Fed credit facility as of September 30, 2008.
AIG plans to retain its U.S. property and casualty and foreign general insurance businesses, and to retain a continuing ownership interest in its foreign life insurance operations. AIG's worldwide property and casualty businesses generated approximately $40 billion in revenues in 2007. The company is exploring divestiture opportunities for its remaining high-quality businesses and assets. AIG is also actively at work on a number of alternatives for its Financial Products business and its securities lending program. AIG Chairman and Chief Executive Officer Edward M. Liddy, said, "We are refocusing on our traditional strengths in property and casualty underwriting. We have a number of remarkable businesses with leading market positions and significant competitive advantages that could not be recreated today.To realize our objective, we will sell a number of extraordinary businesses that are proving to be highly attractive to buyers," Liddy said. "We have already been contacted by numerous strong, stable parties, and we expect that buyers will recognize the value of these properties, be a good strategic fit and offer the greatest potential for growth, profitability, and continuing opportunities for employees. Our goal is to emerge from this process as a smaller but more nimble company that is solidly profitable and has good long-term growth prospects."AIG's global coordinators for the divestiture program are The Blackstone Group and J.P. Morgan.
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