The insurers may also consider joining with sovereign funds to buy American International Assurance Co., the people said, asking not to be identified before a buyer is chosen. The unit has an embedded value of about $20 billion, one of the people said. Embedded value estimates a company’s net worth excluding new business.
AIG is negotiating with the U.S. for a revised bailout as Chief Executive Officer Edward Liddy struggles to raise enough money from asset sales to repay the loan portion of the $150 billion government rescue. The pool of potential buyers is shrinking because of scarce credit and the global recession.