AIG's Bob Benmosche has done about as great a job as anyone could not rushing to dispose of AIG assets at any cost, and has been steadily streamlining and rightsizing AIG by selling off or taking public (IPO) several properties, with some still in the hopper, eventually leaving it only with its profitable US and foreign commercial property/casualty businesses (under recently created umbrella company,
Chartis Inc.) and life insurance / retirement financial services / annuities (
VALIC, AIG Retirement Services, AIG American General and SunAmerica Life Assurance).
To date, AIG has sold off or IPO'd various assets, to repay, separately, $21B in loans to the Federal Reserve Bank of New York :
- AIG Private Bank (wealth management) - to United Arab Emirates-based Aabar Investments for $253M.
- HSB Group (industrial equipment insurance) - to Munich Re for $739M.
- AIG Life of Canada - to Bank of Montreal for $263M.
- 21st Century Insurance (U.S. auto insurer) - to Zurich Financial Services for $1.9B.
- US life insurance finance businesses - to First Insurance Funding for $679M,
- AIG asset management businesses - to Hong Kong-based Pacific Century Group for $500 million.
- American Life Insurance Company (ALICO) - to MetLife for $7.2B in cash and $9B in equity (giving AIG a 20% stake in MetLife).
- AIG's China-based American International Assurance (AIA) - IPO's in late 2010 on the Hong Kong stock exchange as A.I.A. Group Ltd. for more than $20 billion.
- AIG Taiwan unit Nan Shan Life - to Ruen Chen investment consortium for $2.16B (depends upon approval of Taiwan regulators).
- AIG Star Life Insurance and AIG Edison Life Insurance (Japan) - to Prudential Financial for $4.8B.
- AIG's HQ and real estate in Tokyo - to Nippon Life Insurance for $1.2B in 2009.
- AIG's New York HQ - to a Korean developer Youngwoo and Kumho Investment Bank for $100M in 2009.
- International Lease Finance Corporation (ILFC) (Los Angeles-based aircraft leasing) - plans to sell in whole or in pieces or IPO, after initial bid by consortium led by ILFC cofounder Steven Udvar-Hazy has been rebuked. Some of the fleet has already been be sold off, e.g., in 2010 Australia's Macquarie Group paid $1.9B for 60 aircraft from the company's portfolio.
- AIG Financial Products - AIG is winding down the operations of its Wilton, CT unit, whose London division's incredible losses in underwriting of CDS instruments brought the company and much of the world financial system to the brink. The unit has quit writing new business and has sold some investments, including its 50% stake in London City Airport and $1.9B in energy assets portfolio.
So the question here, of course, is figuring out what the meaning of "paid in full" is. Does it mean that AIG will eventually pay of entire investment of $182B, or does it mean that this handover of the shares (92% ownership) to the Treasury completes and ends the "obligation," whatever that was?
Probably, the latter. Because, as it is, even if the market capitalization of AIG will approach AXA (ADR:AXAHY) at $43B or Allianz (ADR:AZSEY) at $60B currently, I don't see how, even with 100% ownership and including a $21B full repayment to FRBNY and any previous payments, it would come to "full" $182B.