Sales proceeds used to bolster Chartis ready for sale
AIG had to use $2.4bn from asset sales to shore up its Chartis property-casualty unit to meet regulator’s demands instead of repaying the US government, Bloomberg reports.
The $1.9bn sale of auto insurer 21st Century to Zurich and $500m from the $1.1bn public offering of shares in reinsurer Transatlantic Holdings will go toward improving the “quality of capital” at Chartis.
“Many factors affect each asset sale and how the net proceeds are applied,” a spkesman said. “Proceeds have been applied to maintain appropriate levels of capital in AIG’s insurance subsidiaries, as is required by AIG’s state regulators and ratings agencies, while some proceeds have been paid to the government.”
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