AIG Selling Their Mortgage-Guaranty Unit

The American International Group Inc. (AIG) has said that they will sell their mortgage-guaranty unit to Arch Capital Group Ltd. for approximately $3.4 billion. They believe they will get $2.2 billion in cash, $250 million in Arch Capital’s perpetual preferred stock and $975 million in non-voting common-equivalent preferred stock from selling United Guaranty Corp.

AIG promised shareholders a massive overhaul and they are now following through. They are spinning off the mortgage insurance unit, cutting jobs and selling their broker-dealer network. 

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