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AIG to sell AIG Life UK parent Alico

AIG chairman and chief executive officer Edward Liddy has announced Alico, the subsidiary that encompasses AIG Life UK, is up for sale.

Liddy told a press conference on Friday: “There are other businesses we have outside the United States primarily residing in our Alico operation. Those businesses we will offer for sale. They are spectacular operations.”

The news follows growing concerns over the closure of AIG Life’s enhanced fund last month.

Alico does not control any of the general insurance businesses in the UK, which are operated separately.

AIG will also sell its life insurance operations in the US, Europe, Latin America, South Asia and Japan.

On Friday AIG indicated its intent to refocus the company on its core property and casualty insurance businesses in order to repay the £35bn loan it took from the Federal Reserve Bank of New York.

AIG says it plans to retain its US property and casualty and foreign general insurance businesses and to retain a continuing ownership interest in its foreign life insurance operations.

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 realise our objective, we will sell a number of extraordinary businesses that are proving to be highly attractive to buyers. We have already been contacted by numerous strong, stable parties, and we expect that buyers will recognise 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.”

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