AIG to break itself up, cede control of 2 units to U.S.

03/2/2009 | Financial Times (free content) · Reuters

After 90 years as a global insurance powerhouse, American International Group is expected to announce a plan to break itself up. AIG's fourth-quarter loss of $61.7 billion was the largest quarterly loss in U.S. corporate history. The insurer will cede control of American International Assurance and American Life Insurance to the U.S. government in exchange for a rescue worth at least $30 billion. "We are breaking up AIG but we are trying to do it in a way that preserves value for the taxpayer, the employees and the businesses," one source said.

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Financial Times (free content) · Reuters

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