AMERICAN International Group (AIG) said on Friday it would refocus the company on its core property and casualty insurance businesses, and generate sufficient liquidity to repay the outstanding balance of its loan from the Federal Reserve Bank of New York and address its capital structure.

In a statement, the company said it is exploring divestiture opportunities for its remaining high-quality businesses and assets. AIG Consumer Finance Group Inc. and its subsidiaries and affiliates, such as Philippines-based AIG PhilAm Savings Bank, fall within this category.

AIG PhilAm is 45 percent owned by AIG Consumer Finance Group and 45 percent owned by Philamlife, the largest and most profitable insurance company in the Philippines and a recognized market leader for many years.

AIG’s decision to divest is not a reflection of their subsidiaries’ business or historical performance. AIG’s subsidiaries in the Philippines remain financially strong and comply with local regulatory capital requirements. AIG Philam is one of AIG and Philamlife’s profitable affiliates with substantial value. 

AIG will proceed to divest by favoring brand name, highly rated, financially strong acquirers for its successful businesses.

AIG said in the statement, “We expect that buyers will recognize the value of these properties, be a good strategic fit and offer the greatest potential for growth, profitability and continuing opportunities for employees. Decisions of this sort will be made quickly and carefully.”

Joven Reyes, president and CEO of AIG Philam emphasized that any sale will not have an impact on customers’ deposits or investments in AIG Philam.

The Philippine-based unit is ready to meet depositor’s entitlements to funds and meet its other obligations to its creditors, merchant partners, sales agencies, service providers and business partners as they come due.

He added in the statement that AIG Philam will adopt a reasonable timeline to complete the sale, to ensure the best outcome for the bank and its shareholders, as well as business partners, suppliers, and most important, depositors and investors.

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The new risk-management agenda

What next?

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AIG to refocus on core property, casualty-insurance businesses

AMERICAN International Group (AIG) said on Friday it would refocus the company on its core property and casualty insurance businesses, and generate sufficient liquidity to repay the outstanding balance of its loan from the Federal Reserve Bank of New York and address its capital structure.