Wall Street Journal Reports: ILFC Considers Split from AIG

The Wall Street Journal said on Monday that International Lease Finance Corp, a unit of American International Group, is worried by the insurer's financial troubles and mulling a split from it. The publication cited sources familiar with the matter.

Source: Source: Wall Street Journal | Published on May 12, 2008

Officials at ILFC, a giant buyer of commercial aircraft which leases planes to air carriers, are worried that AIG's financial issues could make it tougher for ILFC to compete in the airplane leasing industry, the Journal report said.

Last week, AIG posted a $7.8 billion quarterly loss after writing down assets linked to subprime mortgages. The results marked the second consecutive quarter that the world's largest insurer posted record losses. AIG also said it was replacing its chief financial officer, as operating income weakened across much of the company. Credit rating agencies Fitch and S&P cut their ratings on AIG after its quarterly report.