Posted on 05 Mar 2010
American International Group Inc. (AIG) plans to sell its remaining 14% stake in casualty reinsurer Transatlantic Holdings Inc. held by its American Home Assurance Co. subsidiary.
Transatlantic shares were down 4.2% in recent trade at $51.52, while AIG rose 1.4% to $27.08 amid a broad market gain.
AIG has been selling off assets in an effort to repay the government's fall 2008 bailout. The company recently agreed to sell its Asian life insurance business for $35.5 billion and saw a tax hurdle removed in the planned $15 billion sale of its second-biggest foreign life insurer to MetLife Inc.
American Home plans to start the offering Tuesday, concurrent with Transatlantic being added to the S&P Midcap 400 Index. Some of the stake is planned to be reserved for purchase by funds that track the index. Transatlantic's shares have more than doubled the past year.
American Home sold two-thirds of its stake in Transatlantic in mid-2009 and has since cut it further.