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ANALYSIS: Benmosche confident AIG will make it following AIA and Alico deals
10 March 2010
With the news that AIG is selling Alico to MetLife and AIA to Prudential, Reactions assesses how far AIG still has to go to pay off its debts to the US government.
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With the news that American International Group (AIG) is selling American Life Insurance Company (Alico) to MetLife, and its Asian life insurance subsidiary, American International Assurance (AIA) to Prudential, Reactions had a look at the extent to which these deals will enable help AIG repay its debt to the US government.
In the past two weeks AIG has reached agreements on the biggest-ever insurance-related M&A deal, with its sale of AIA, and the sixth largest, with its Alico deal.
The New York Times reported that despite the combined proceeds from the deals, the outstanding debt of roughly $50bn is likely to keep growing, because although the company has not accessed the full amount of the government bail-out of $182m, every few months it taps a billion or two billion more. However, Mark Herr, an AIG spokesperson, told Reactions that in reality balance is being restored. “Over time the company...
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