Insurer expected to complete sale of US personal lines business 'soon'.
AIG is expected to complete deals to sell its US personal lines unit and an equipment insurer by the end of the year, reports Reuters.
The beleaguered US insurer is expected to clinch a deal soon to sell its US personal lines business, which one analyst has valued at $5bn-$7bn, according to the report.
It is also close to selling a smaller business, Hartford Steam Boiler Inspection and Insurance Co, said sources familiar with the situation.
The sales are the first sign that AIG chief executive Edward Liddy is progressing with his plans to sell off a large part of its business to repay the massive $85bn rescue loan from the US government. It was handed a further $37.8bn last month.
The report said AIG is not expected to announce any deals when it reports its Q3 results on Monday.
The insurer is widely expected to post its fourth consecutive quarterly loss, hurt once more by write-downs on credit derivatives linked to subprime mortgages.
AIG said on Oct 3 that it planned to keep its US property-casualty, foreign general insurance businesses and an ownership interest in its foreign life operations but sell the remainder. So far, no deals have been announced.
An AIG spokesman refused to comment on the asset sales.