AIG sells US stakes to reduce debt
Just days after its Australian arm rebranded itself to Chartis, big US insurer AIG has sought to reduce its US debt exposure resulting from last year's Government bailout by selling stakes in two of its subsidiaries to the Federal Reserve Bank of New York.
US wire service reports have confirmed that AIG is selling preferred shares in two of its life insurance companies equating to US$25 billion, thereby reducing the company's debt exposure to the New York Federal Reserve to US$17 billion.
The two subsidiaries affected by the transaction are American Life Insurance and American International Assurance.
The Australian arm of the company has been largely unaffected by events in the US, but Chartis Australasia chief executive Chris Townsend has acknowledged there have been issues with public perceptions of the AIG brand.
"A company's brand and the associated image and public perception that comes with it are hugely important factors for any business. This is something we have been acutely aware of given the well-publicised challenges our parent company has faced in the past 15 months," Townsend said.
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