AIG SHUTS DOWN RICHMOND INSURANCE UNIT IN BERMUDA

New York-based AIG has reportedly shut down Bermuda-based reinsurance affiliate Richmond Insurance and is looking to sell it or place it in run-off. George Cubbon, head of AIG’s Bermuda business, told Reuters that Richmond recently surrendered its operating license to Bermudian authorities, and that the group was “exploring ways of running off the company’s business, or disposing of its entities”. If not placed into run-off, Richmond, which has subsidiaries in Barbados and Gibraltar, could be sold off in pieces or as a whole, he said. Last month AIG paid $12.2m to Munich Re to boost its stake in Richmond to 69.9% from 19.9%, and intends to include Richmond among its affiliate and subsidiary companies. Four other minority shareholders have a stake of between 1% and 10%.