Washington, September 06: US insurance giant AIG announced the sale of part of its investment advisory and asset management business to a subsidiary of Hong Kong-based Pacific Century Group for USD 500 million.
AIG said it would receive a cash payment of USD 300 million under the agreement with Bridge Partners LP.
The insurance company said in a statement that it will continue to operate its in-house investment group, which currently oversees around 480 billion in assets.
The units being sold to Bridge Partners operate in 32 countries and manage approximately USD 88.7 billion in investments belonging to institutional and retail clients, AIG said in a statement.
AIG was the largest single recipient of US bailouts, with the government pumping more than USD 170 billion into the firm in late 2008 to keep it afloat and taking a controlling stake in the group in the process.
The company was on the verge of collapse last year after backing trillions of dollars in risky financial products amid a home mortgage meltdown that triggered financial turmoil.
–Agencies