December 22, 2008: AIG Sells Unit at Steep Discount

Recently bailed-out insurer AIG agrees to sell one of its insurance subsidiaries, Hartford Steam Boiler, for $742 million. However, this is about a third less than it paid for the unit eight years ago. [Bloomberg, 3/5/2009] The unit is purchased by the German reinsurer Munich Re, which wants to expand its US business. [Reuters, 4/17/2009] This sale is part of a program to sell business units in order to repay AIG’s bailout loans to the government (see September 18, 2008).