AIG plans sale of business units

October 3, 2008 8:03:03 AM PDT
American International Group says it will sell off a number of business units, while retaining its U.S. property and casualty and foreign general insurance businesses, in an effort to become a smaller, more nimble company.The world's largest insurer says it is also working on a number of alternatives for its financial products business and securities lending program.

The New York-based firm says it has already been contacted by a number of suitors.

AIG had teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. The firm struck a deal with the government in mid-September for a two-year, $85 billion emergency loan.

As of Sept. 30, AIG had drawn $61 billion on the credit facility.