NU Online News Service, July 20, 3:29 p.m. EDT
New York-based insurer American International Group, Inc., said late Friday that it has closed on a deal to sell its consumer finance operations in Mexico. Terms of the deal were not released.
The units consist of AIG Universal, S.A. de C.V., SOFOM E.N.R. and Markcenter Services, S. de R.L. de C.V.
The sale was made to Desarrollo de Negocios Integrados, S.A. de C.V. and Inversiones DNI, S.A. de C.V., companies related to Afirme Grupo Financiero and Concorcio Villacero, AIG said.
In a statement, AIG's Alain Karaoglan, senior vice president--divestiture said, "This sale continues the momentum of AIG's restructuring efforts. We are pleased with the progress that we are making with the disposition of our global consumer finance businesses."
AIG said the unit, launched in 2005, has a network of 50 branches serving approximately 50,000 clients. It offers clients in 12 states in the central and northern regions of Mexico personal loans and third party insurance.
Since it fell into financial trouble last year and accepted a government bailout to survive, AIG has been selling off its assets to pay back government loans that are estimated to be well north of $100 billion.
According to documents posted on the Web site of the Federal Reserve Bank of New York, which has been a leading player in the bailout, Ernst & Young and Morgan Stanley stand to profit from AIG's misfortune.
Ernst & Young, performing "certain due diligence services" for the N.Y. Federal Reserve, will receive somewhere between $10 million and $40 million.
Morgan Stanley charged the N.Y. Federal Reserve $4 million for an advisory fee and another $2.5 million per quarter beginning Oct. 1, 2008. The bank will also charge fees, to be determined at the time of the transaction, for work with the sale or restructuring of assets.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
