AIG Pulls Out of Argentina

Another one bites the dust: American International Group(AIG Quote) is saying adios to its Argentine consumer unit.

The insurer said on Tuesday that it sold its consumer-finance operations in the country to Banco de Galicia y Buenos Aires and an investment group led by Grupo Pegasus. The financial terms of the deal were not disclosed.

The business being sold consists of Compania Financiera Argentina (CFA), Cobranzas y Servicios and AIG Universal Processing Center.

CFA is a leading provider of personal loans in Argentina, with 93 branches nationwide, distribution agreements with approximately 3,900 retailers and one million customers.

AIG's Argentine unit is just another piece being shed by the insurance company as it attempts to pay back the $85 billion it borrowed from taxpayers. Last month the company said it will get rid of a majority of its stake in Transatlantic (TRH Quote).

Shares of AIG fell nearly 2% to $1.63 in morning trading.