New York: American International Group Inc the insurer crippled by losses on bad mortgage bets, said on Friday it will focus on its property, casualty and foreign general insurance businesses.
The company, whose shares rose 12% in premarket trading, said it would sell its remaining businesses and is working on alternatives for its financial products business and its securities lending program to help repay up to $85 billion in borrowings from the federal government.
The firm’s worldwide property and casualty businesses generated close to $40 billion in revenues in 2007.
AIG said it had drawn $61 billion on the Federal Reserve facility as of 30 September.
Once the world’s largest insurer, AIG accepted a federal bailout on 16 September after losses in a financial products unit drove it to the brink of collapse.
AIG’s shares, which have traded as high as $70.13 in the last year, fell to $1.25 in the hours before the bailout. The shares closed at $4.00 on Thursday.