Report: AIG mulls folding some of its mortgage insurance units

American International Group Inc. is considering closing down parts of its mortgage insurance unit following a failure to offload it, Bloomberg reported.
MAY 01, 2009
American International Group Inc. is considering closing down parts of its mortgage insurance unit following a failure to offload it, Bloomberg reported. As the New York-based carrier tries to sell off its businesses to repay the federal government, pieces of Greensboro, N.C.-based United Guaranty Corp., its mortgage insurer, may be shut down if buyers aren’t interested, insiders told Bloomberg. The unidentified sources told Bloomberg that AIG is working with McKinsey & Co. of New York to assess its options for operating units that it plans to sell. So far, AIG has managed to sell off about $4.4 billion in assets since the federal government threw it a lifeline last fall. Public aid to AIG has added up to $182.5 billion. United Guaranty has been plagued with losses in recent quarters, racking up an operating loss of $485 million in the fourth quarter and $2.48 billion for full-year 2008. Calls to AIG weren’t immediately returned.

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