Report: MetLife, Axa in race for AIG’s life insurance arm
Thursday, February 26, 2009 at 3:02 am
American insurer MetLife and French entity Axa are looking to buy one of beleaguered AIG’s life insurance subsidiaries, says a report.
American International Group better known as AIG, which was severely hit by the financial turmoil, is exploring options to sell many of its assets.
“Rival bidders are circling one of AIG’s life insurance subsidiaries as the stricken American financial group prepares to report one of the biggest losses in corporate history,” the Times said in a report published online today.
The daily noted “it emerged yesterday” that America’s largest life insurer MetLife had offered about 11.2 billion dollars for AIG’s American Life Insurance Co.
“However, it is understood that the offer may fall to eight billion dollars because of the deterioration of the division’s financial condition,” it said.
American Life has operations in about 50 countries but it was not clear whether the entity has business in India.
“A rival bid for American Life, which spans 50 countries, has been lodged by AXA, the French insurance group, but this excludes the US company’s Japan operations, its biggest market,” The Times said.
The report added that AIG’s chief executive Edward Liddy. who was appointed by the US government, is hoping to sell about two-third of AIG’s assets.
“However, the company will scrap this strategy if tough market conditions prevent it from achieving a good price for its assets,” the daily said.
The Times noted that the sale talks come as the group prepares to announce what is expected to be a record 60 billion dollars loss for the fourth quarter.
AIG has already got two lifelines from the US Federal government, which now owns 80 per cent of the battered entity.
Reports said the insurer is in talks for a new lifeline from the American government.
(Agencies)
( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)
|
|
|
From World:
Got something to say?
You must be logged in to post a comment.
Todays news from Business News
- Greek Parliament Approves Austerity Measures Amid Clashes
- PM Yousuf Raza Gilani Charged With Contempt
- Gujarat Riots: High Court Slams Narendra Modi Govt For Failing
- Syria’s Homs Suffers ‘Heaviest’ Shelling
- Gilani Files Appeal In Contempt Case
Advertisement
Email Subscription
Advertisement
