American International Group (NYSE: AIG) has selected financial services giant Citigroup, Inc (NYSE: C) as one of the global coordinators for an initial public offering of its Asian life insurance subdivision, AIA, according to a report from the Wall Street Journal.
“AIG has added Citigroup to the list of global coordinators for the listing of a stake in its largest overseas life insurance business,” The Wall Street Journal reported, citing a person familiar with the matter.
The insurer, which is largely owned by the U.S. government, has also brought on Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS) and Deutsche Bank AG (NYSE: DB) to advise the company for the initial public offering of AIA Group LTD, the pan-Asian life insurance division that AIG must sell to help repay U.S. taxpayers.
The Economic Times cited analysts concerns “for the banks would be how to minimize the risk of tapping investors for capital when the outlook for equity valuations is so uncertain.” The Times said that AIG’s management team would likely seek to avoid any issues after Prudential’s $35.5 billion bid for AIA collapsed during the month of June. The Times suggested that AIA could minimize risk by selling shares in the issue in large chunks to major investors ahead of the IPO.
American International Group, Inc. (AIG), is a holding company, which through its subsidiaries, is engaged primarily in a range of insurance and insurance-related activities in the United States and abroad. AIG’s four reportable segments include: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services, and Financial Services. In March 2010, the Company closed the sale of a portion of its asset management business to Pacific Century Group.
Shares of AIG traded down 1.28% hitting $38.47 during mid-day trading on Friday.
