Report: AIG unit mulls split

One of American International Group Inc.’s units is considering splitting from the insurer, The Wall Street Journal reported.
MAY 12, 2008
One of American International Group Inc.’s units is considering splitting from the New York-based insurer, The Wall Street Journal reported. The company’s recent financial troubles have worried officials at International Lease Finance Corp., a Los Angeles-based airplane-leasing firm that’s run by an AIG shareholder, insiders told the Journal. Last week, AIG reported a $7.8 billion loss for the first quarter, stemming from the falling value of investments in subprime mortgages. It was the second straight quarter AIG was in the red: The company took a $5.29 billion loss in the fourth quarter of 2007. Meanwhile, ILFC reported a jump in profits for the first quarter, hitting $149.5 million, up from $119.2 million. But rating agencies are less than rosy about the results: Moody’s Investors Service of New York is reviewing the company for a downgrade of its A1 rating, while Fitch Ratings Ltd. of New York has lowered the company’s issuer default rating to A from A+. Insiders told the Journal that AIG’s bad news was unexpected and will probably prompt ILFC’s officials to push for change. Possible choices include spinning the company off or selling it to another company or a group of investors. “Any disposal or acquisition involving ILFC or any other part of AIG would be discussed and decided by AIG management and its board of directors,” said an AIG spokesman.

Latest News

SEC fines Zoe Financial $450K over undisclosed referral conflict
SEC fines Zoe Financial $450K over undisclosed referral conflict

Salespeople at the firm often went beyond the matching algorithm to recommend network advisors on its Zoe Wealth platform, according to the regulator.

Senate vote on NIL bill could reshape college athletes' paydays
Senate vote on NIL bill could reshape college athletes' paydays

The Protect College Sports Act would cap school payments and codify NIL rights, with implications for advisors guiding young athletes.

'I'm done': Pandemic memories push business owners toward the exit
'I'm done': Pandemic memories push business owners toward the exit

"I know the number that I want to be able to retire on, and now I just want out," says Wilmington Trust's Marguerite Weese, describing a common refrain among business-owner clients.

Northern Trust bulks up family office team with New York hires
Northern Trust bulks up family office team with New York hires

Bessemer and Brown Brothers Harriman veteran Robert Ludricks III and private markets specialist Olof Akesson join the ultra-high-net-worth push on the East Coast.

SEC accuses trucking operator of running $127 million Ponzi scheme
SEC accuses trucking operator of running $127 million Ponzi scheme

765 investors were promised 260% annual returns on truck leases

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains