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AIG asset sale advances with auto insurer deal; More sales expected as insurer raises funds to repay government.

Publication: Business Insurance
Publication Date: 20-APR-09
Format: Online
Delivery: Immediate Online Access
Full Article Title: AIG asset sale advances with auto insurer deal; More sales expected as insurer raises funds to repay government.(American International Group Inc)

Article Excerpt
Byline: MARK A. HOFMANN

Despite its $2 billion sale of its personal lines auto business, American International Group Inc. still faces a long road ahead as it tries to raise billions to repay the government, analysts say.

And while some analysts see the sale of 21st Century Insurance Group to Zurich Financial Services Group's Farmers Group Inc. as a harbinger of further deals, others play down the significance of what they see as a relatively small unit of New York-based AIG.

Under the terms of the sale, which was announced last week, Farmers will pay AIG $1.9 billion in cash and capital notes...

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