NU Online News Service, June 10, 1:21 p.m. EDT
American International Group said it has closed the sale of its interest in reinsurer Transatlantic Holdings, Inc., reducing its holdings in the company to 14 percent and netting the New York-based insurer $1.14 billion.
AIG said the stocks, now owned by its subsidiary American Home Assurance Co., would enable AIU Holdings, Inc., the spin-off of AIG's property-casualty business "to monetize part of its investment in Transatlantic and improve the quality of its capital and help position AIU Holdings for continued success."
In a separate statement, AIU said its portion of the deal would amount to $500 million.
AIG, which at one time owned around 60 percent of Transatlantic, has seen that share drop to 13.9 percent, which is now owned by American Home Assurance Co. American Home is a member of AIU.
This story was updated at 4:11 p.m. EDT
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