AIG Sells AIG Private Bank to Abu Dhabi Firm
December 1, 2008 - 5:26 PMAmerican International Group Inc. on Monday said it has agreed to sell its wealth management arm AIG Private Bank Ltd. to Aabar Investments PJSC of Abu Dhabi.
Terms of the deal, which is part of the New York-based insurance company's restructuring plans, were not disclosed.
Under its new ownership, AIG Private Bank will become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai.
The wealth management company will conduct business under a new name and will continue to focus on providing wealth management services.
"This sends a clear message to our customers that we will continue to be a trustworthy, reliable and competent partner for them," Chief Executive Eduardo Leemann of AIG Private Bank said in a statement.
Leemann and his senior management team will remain with the bank, AIG said.
Faced with a liquidity crunch, AIG said in October it would sell off a number of business units to pay off a $85 billion government loan. The insurer's total government assistance has now risen to about $150 billion.
The company has not specifically disclosed the assets it would sell or the expected prices from the sales. However, AIG has said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and plans to retain an ownership interest in its foreign life insurance operations.
(Copyright 2008 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)