CEO Ed Liddy to make AIG smaller – AIU could be floated
AIG boss Edward Liddy has said: "AIG will never again be the world's largest insurer," in an interview with Reuters.
AIg will soon sell several more assets, has plans for three initial public offerings, and expects the financial products unit to be a much smaller problem by year-end, Reuters says.
"We have a plan to repay taxpayers, it is a good plan, and it is working," Liddy said. "We do not do anything without vetting it with the Federal Reserve.”
As many as 40 Fed representatives are in AIG's offices. "There are a lot of cooks in the kitchen," he said.
AIG's global property-casualty arm, recently renamed AIU Holdings may be the first public offering, which could raise between $38bn and $58bn, according to Bernstein Research analyst Todd Bault.
In the meantime, AIG may still sell all or parts of these businesses to private parties if buyers emerge, said Liddy.
