New York-based American International Group Inc. said it will sell AIG Life Insurance Company of Canada to BMO Financial Group, headquartered in Toronto.
Under the terms of the transaction, BMO will acquire AIG Life of Canada for approximately Canadian $375 million (approximately U.S. $308 million) in cash, subject to any change in net worth between Sept. 30, 2008 and closing.
The sale is the latest in AIG's liquidation of assets to pay off more than $100 billion in government loans it required to keep it afloat after a credit crisis brought on by subprime mortgage loan investments. On Dec. 22 the company announced it was selling its Hartford Steam Boiler unit to German reinsurer Munich Re for $742 million, a price that drew criticism from major stockholder Maurice Greenberg, the chairman of C.V. Starr and former chairman and chief executive officer of AIG.
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