December 22, 2008 / 2:18 AM / in 10 years

UPDATE 1-AIG in Hartford Steam talks with Munich Re-source

(Adds background)

NEW YORK, Dec 21 (Reuters) - American International Group Inc (AIG.N) is in talks to sell its Hartford Steam Boiler Inspection and Insurance Co unit to Germany’s Munich Re (MUVGn.DE), a source familiar with the matter said on Sunday.

The unit could fetch between $700 million and $1 billion, according to the source. Talks are ongoing and the timing of any announcement was unclear.

AIG, which bought Hartford Steam Boiler for around $1.2 billion in 2000, is under pressure to sell assets around the world to pay off a huge government loan.

The U.S. government saved AIG from bankruptcy in September with a rescue plan that has since ballooned to about $152 billion.

That is forcing AIG to shed or sell stakes in units globally. It has 74 million customers and 116,000 employees in 130 countries.

Hartford Steam Boiler provides insurance for a range of risks, including insurance to cover the cost of lost business and repairs when equipment breaks down. The company was founded in 1866.

AIG and Munich Re both declined to comment. (Reporting by Paritosh Bansal; Writing by Michael Erman; Editing by Lincoln Feast)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below