AIG Pushes Asia Spinoff Via IPO
The beleaguered insurer is expediting steps to put American International Assurance Group on Hong Kong exchange.
May 18, 2009
American International Group, indebted billions to the US government, will pay back some of its loans by spinning off its Asian insurance unit via IPO.
AIG’s RFP process will select global coordinators and book runners for its IPO through Blackstone, the company’s financial advisor for restructuring and its IPO advisor for the AIA debut.
“At this stage, we believe that a public listing for AIA would be in the best interests of all stakeholders, including U.S. taxpayers, policyholders, employees and distribution partners,” said Edward Liddy, chairman and chief executive of AIG.
The decision to spin the unit off was announced on March 2.
AIA employs about 20,000 and more than 20 million customers in Asia; its assets have been valued at more than $60 billion. The company will offer life insurance, retirement planning, accident and health insurance, among other products.
“Our ability to weather the economic turbulence demonstrates the strength of our operations, confidence of our customers, and support of our distribution partners,” said Mark Wilson, president and chief executive of AIA Group.
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