(Bloomberg) – AmericanInternational Group Inc., the insurer that's been divestingassets to narrow its focus, agreed to sell ski operations at Vermont's Stowe Mountain toVailResorts Inc.

AIG will retain majority ownership of the base area, whichincludes a 312-room lodge, along with a country club and futuredevelopment rights, according to statements Tuesday from thecompanies.

The Broomfield, Colorado-based buyer gains a foothold in theU.S. East Coast to complement locations in its home state, Utah andCalifornia.

Simplifying investment portfolio

AIG Chief Executive Officer Peter Hancock has beensimplifying the investment portfolio, exiting some volatilehedge fund holdings and reshaping its real estate division. The CEOlast year completed the sale of International Finance Centre Seoulin Korea. The Stowe deal fits a pattern of AIG retaining financialties to divested assets, while leaving some oversight to operatorswith more specialized management.

“Under Vail Resorts' management, Stowe's reputation as a premierski destination with a commitment to excellent service willcontinue to grow,” Douglas Tymins, president of AIG Global RealEstate, said in the insurer's statement.

The Stowe relationship spans back to the 1940s when AIG'sfounder, Cornelius Vander Starr was frustrated with the wait inline for a ski lift, according to a Burlington Free Press story postedon the ski resort's website. He decided to put up funds foranother lift, and AIG eventually took ownership, the article says.AIG is among insurers that invest premium dollars in real estate togenerate funds for when claims come due.

Vail agreed to pay AIG $50 million

Vail's stock has climbed more than 20 percent for five straightyears through 2016, as the company expanded through deals includingthe purchase last year of Canada's Whistler Blackcomb Holdings Inc.The company agreed to pay AIG $50 million in the Stowe deal,through the price could be adjusted based on earnings and capitalexpenditures through closing. The Vermont location sells seasonpasses that can be more than $2,000 apiece.

“With the investments in both mountain infrastructure and basearea facilities that AIG has made over the years, Stowe MountainResort has become the premier, high-end resort for East Coastskiers and snowboarders,” Vail CEO Rob Katz said in the buyer'sstatement. “We look forward to working with AIG to continueenhancing the guest experience and to ensure the resort's long-termsuccess.”

Vail climbed $1.87 to $181.87 at 9:34 a.m. in New York,extending its gain this year to 13 percent. AIG rose 21 cents to$62.71, narrowing its decline since Dec. 31 to about 4 percent.

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