(Bloomberg) — American International Group Inc., the largest property-casualty insurer in the U.S. and Canada, announced a tender offer for as much as $1.5 billion of its bonds as Chief Financial Officer David Herzog seeks to cut debt.
The offer expires on July 10, New York-based AIG said today in a statement. It covers securities issued in dollars, pounds and euros, some with coupons of more than 8 percent.
AIG has been reducing debt to improve its standing with credit-rating firms and regulators as the company prepares for increased oversight from the Federal Reserve after its designation as a systemically important financial institution. About 40% of the insurer's debt is from 2007 and 2008 when the global credit crisis and the company's near collapse forced borrowing costs higher, Herzog said at a conference last month.
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.