AIG not to sell ALICO's Bangladesh operations

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Mushir Ahmed
Troubled American Insurance Group (AIG) does not have any plan to sell American Life Insurance Company (ALICO)'s operations in Bangladesh despite unveiling a string of similar moves in Asia.
A senior official dispelled the speculation on Monday, amid reports that AIG was selling off its Japan units and its biggest operation in the Philippines.
"ALICO being a member company of AIG is incorporated in Delware. It's Bangladesh operation is a branch office," he said.
"So there is no question of its sale," he said.
His comments came as the embattled announced plans on Friday sell off "non-core" assets to pay off its loan from the US Federal Reserve, which would conclude a controversial government bailout.
At a briefing last week AIG chairman and chief executive Edward Liddy offered no timetable or specifics on the sales but said it would be "a deliberate and disciplined approach."
"We'll sell as many assets as needed to repay our obligations," he told a conference call.
AIG, or American International Group, had drawn 61 billion dollars from a Fed credit line of 85 billion dollars as of September 30.
The company said it plans to retain "its US property and casualty and foreign general insurance businesses, and to retain a continuing ownership interest in its foreign life insurance operations" but would explore "divestiture opportunities for its remaining high-quality businesses and assets."
The AIG repayment would end a controversial US government bailout of the company, one of the world's biggest insurers, which had been on the brink of a collapse that would have sent more shock waves through the financial system.
The US Federal Reserve last month agreed to a loan of up to 85 billion dollars to stave off collapse at AIG. The deal sealed last month gave the US government a 79.9 percent stake in the insurance behemoth.
The Blackstone Group and JP Morgan will be AIG's global coordinators for the divestiture program, AIG said, adding that its "property and casualty businesses generated approximately 40 billion dollars in revenues in 2007.
On Saturday Japan's Kyodo News reported that Germany's Allianz Group and other major insurers are considering buying AIG's three life insurance units in Japan, possibly including its three Japanese units -- Alico Japan, AIG Edison Life Insurance and AIG Star Life Insurance.
Allianz and Aegon N.V. of the Netherlands have shown strong interest in buying the three firms, Kyodo said.
Japan's top non-life insurer Tokio Marine Holdings was also showing interest and had already started collecting information about their finances, according to the evening edition of the Asahi Shimbun.
Alico Japan is expected to be priced at around two trillion yen (19 billion dollars), with AIG Star and AIG Edison seen to sell for at least 500 billion yen, respectively, Kyodo reported, quoting its sources.
The US Federal Reserve last month agreed to a loan of up to 85 billion dollars to stave off collapse at AIG. The deal gave the US government a 79.9-percent stake in the insurance behemoth.
On Monday, the company said it would also sell its Philippine-American Life and General Insurance Co, the largest insurer in the Philippines.
About 10 local and foreign entities have expressed interest in acquiring all or parts of the group, which is involved in insurance, banking and asset management.
ALICO has been operating in Bangladesh since 1972 and currently owns more than 20 per cent of the country's fast growing life insurance market.
The company last year had a premium of over Tk 7.71 billion, more than double its nearest competitors Delta Life and National Life.