After failed negotiations with the British Prudential, the U.S. insurer American International Group (AIG) is considering other alternatives for its subsidiary Asian life insurance, AIA. Among them, the IPO. "We expect AIG to sell AIA is seeking through an IPO, which will take more time to finalize," warned the credit rating agency Standard & Poor's cited by the Tribune on Thursday. However, according to the Italian daily Corriere della Sera, citing "sources close" to Generali, the Italian insurer is interested in the activities of IAA in the Philippines and China. A spokesman for Generali questioned by AFP, said he was "very premature to talk about" a possible interest group for those assets.The group expects that "AIG waives the original hypothesis (ie the IPO, Ed)" to position themselves as the problem of prices "which has stopped all candidates" was resolved.
The boss of AIG would have been willing to accept the bid for Prudential
The solution of the IPO remains the preferred solution by AIG. According to most analysts, the rating of AIA could yield 15 billion euros. We are still far from the $ 35 billion U.S. insurer hoped to realize from its sale to Prudential, but it would be a way to wait the U.S. Treasury while giving itself the means of selling activities that will repay the 182 billion dollars spent by Washington to save the U.S. insurer.According to U.S. media, Robert Benmosche was ready to accept the offer from Prudential to 30.4 billion dollars, but the Board of Directors of AIG has opposed.
Check Stock Exchange, AIA could also become an attractive target for other insurers. An analyst of Credit Agricole, the subsidiary of AIG achieves better operating results than those of Prudential Asia (15% against 7%).
Once listed, AIA could recover activities of Prudential
According to the Times, AIA might even win market share if its subsidiary Prudential's Asian operations. The British newspaper even suggests the possibility of recovering AIA activities of Prudential of interest.And again according to the Times, Tidjane could finally keep his post of director general, despite criticism from its shareholders in particular.
Bankers value of AIG's Asian subsidiary of AIG's life insurance between 32 and 36 billion dollars. A range that corresponds to those of Goldman Sachs and Citigroup, respectively, between 32 and 34 billion and $ 34 and $ 36 billion.
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