Whenever I write anything on this blog, I do try to research it as thoroughly as possible. I do searches, watch interviews, etc. I have never had a company or someone just e-mail me something... until this morning from AIG.
The following is the press release sent to blogs like this one from AIG.
We apologize for sending this to you as a mass e-mail distribution, but we thought you would want to receive this as soon as it came out, since you and your readers have been following this story closely.
AIG TO REFOCUS AS WORLDWIDE PROPERTY AND CASUALTY COMPANY WITH CONTINUING PRESENCE IN FOREIGN LIFE
Ongoing Business Expected To Have Significant Earnings Power
NEW YORK, October 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 $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 (includes VALIC) 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 already proving to be highly attractive to buyers," Liddy said. "We have already been contacted by numerous strong, stable parties, and we expect the 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 divesture program are The Blackstone Group and J.P. Morgan.
We hope this information is useful.
All the best,
AIG Blog Relations
What Does This Mean for AIG-VALIC Retirement Accounts?
Well, at the moment nothing. It does seem to point to the fact that AIG may be selling its VALIC unit, but to who we do not know. I would agree with the statement that AIG does in fact have several very profitable lines of business. In fact, it was only due to the mortgage related securities that AIG was even effected at all.
AIG is working with two of the most respected names in industry to work out its issues with JP Morgan and The Blackstone Group. I would imagine that there have been and will continue to be numerous discussions about what business units may be divested (sold).
I will continue to look for information on AIG and especially VALIC, and as I receive it, I will post it and comment as necessary.
Today's big story... get the financial bill passed in the House.
The following is the press release sent to blogs like this one from AIG.
We apologize for sending this to you as a mass e-mail distribution, but we thought you would want to receive this as soon as it came out, since you and your readers have been following this story closely.
Ongoing Business Expected To Have Significant Earnings Power
NEW YORK, October 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 $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 (includes VALIC) 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 already proving to be highly attractive to buyers," Liddy said. "We have already been contacted by numerous strong, stable parties, and we expect the 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 divesture program are The Blackstone Group and J.P. Morgan.
We hope this information is useful.
All the best,
AIG Blog Relations
What Does This Mean for AIG-VALIC Retirement Accounts?
Well, at the moment nothing. It does seem to point to the fact that AIG may be selling its VALIC unit, but to who we do not know. I would agree with the statement that AIG does in fact have several very profitable lines of business. In fact, it was only due to the mortgage related securities that AIG was even effected at all.
AIG is working with two of the most respected names in industry to work out its issues with JP Morgan and The Blackstone Group. I would imagine that there have been and will continue to be numerous discussions about what business units may be divested (sold).
I will continue to look for information on AIG and especially VALIC, and as I receive it, I will post it and comment as necessary.
Today's big story... get the financial bill passed in the House.
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