AIG SELLS PRIVATE BANK FOR $254M

Troubled New York-based insurer AIG has agreed to sell its Switzerland-based private bank unit to Aabar Investments for CHF307m ($254m). Abu Dhabi-based Aabar said in a regulatory statement that the payment was subject to some adjustment, based on closing share process. Aabar will also assume responsibility for loans outstanding totalling CHF100m. AIG Private Bank will be renamed, continuing to maintain a Swiss base. H E Khadem Al Qubaisi, Chairman of Aabar and future designated chairman of the bank, said that “this transaction represents a great opportunity to leverage AIG Private Bank’s expertise in wealth management and to further develop it in our region”. The sale will also be something of a relief to AIG, which since early October, when it began preparations for the sale of many of its subsdiaries, has only closed a deal on the sale of its 25% stake in London City Airport.