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AIG says AIA will make more than $2B this year

Sat Sep 25, 2010 5:36 PM EDT
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Associated Press
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NEW YORK — American International Group Inc. says the Asian life insurance unit it plans to spin off will make an operating profit of at least $2 billion this fiscal year.

AIG disclosed the forecast for AIA Group on Saturday. AIA reported pretax profit of $1.3 billion in 2009.

AIG said in July it would conduct an initial public offering of AIA Group on the Hong Kong Stock Exchange after a $35.5 billion deal to sell AIA to Prudential PLC fell through.

AIG is selling assets to help pay back $180 billion in U.S. government bailout funds it received in 2008. CEO Bob Benmosche said last month that when the IPOs of AIA and the American Life Insurance Co. are completed, AIG will be "within striking distance of completing our repayment."

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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