Insurance behemoth AIG announced yesterday its completion of its sale of its United States automotive insurance unit in an effort to unload its assets, according to the Wall Street Journal. The move is part of AIG’s overarching plan to sell assets and raise capital in order to pay back its outstanding loans to the U.S. government.
AIG sold its auto insurance business to rival Zurich Financial Services for $1.9 billion, AIG’s largest sale to date. The deal was announced in April.
AIG has also agreed to sell its Columbia-based consumer finance unit to Ecuador’s Banco Pichicha, the terms of which were not disclosed.
The global insurance group received nearly $175 billion in government assistance, compromising an 80 percent stake in the company.