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AIG Sells 2 Units

By Staff Writer

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American International Group Inc. has raised about $1 billion by selling a life unit and a property-casualty unit.

AIG, New York, sold AIG Life of Canada, Toronto, to the Bank of Montreal, Montreal, which does business as BMO Financial Group, for $263 million.

In January, AIG said it hoped BMO would $308 million for the Canadian life operations.

AIG Life of Canada sells whole life insurance, universal life insurance, term life insurance, critical illness insurance and immediate annuities.

In January, AIG said AIG Life of Canada had about 300 employees, 400,000 customers and relationships with about 5,000 brokers. BMO’s BM Nesbitt Burns Financial Services Inc. unit has 74 branches and about 1,400 financial advisors.

BMO said it would combine the operations of AIG Life of Canada with its own operations over the next 6 to 12 months.

AIG raised $739 million by selling a second business, Hartford Steam Boiler, to M?nchener R?ckversicherungs-Gesellschaft A.G., Munich, Germany. Munich Re also is assuming $76 million in outstanding Hartford Steam Boiler capital securities, AIG says.