AIG Bids Adios to Mexico

(Update adds stock movement, adds information relating to AIG's debt-reduction deal, announced Thursday.) American International Group(AIG) is throwing in its sombrero.

The flailing insurer announced on Wednesday that it will sell its consumer finance operations in Mexico-- AIG Universal and Markcenter Services -- to Desarrollo de Negocios Integrados and Inversiones DNI. The terms of the deal were not disclosed.

AIG Universal has a network of 50 branches serving about 50,000 clients with personal loans and third-party insurance.

The Mexican division is just one of the many assets AIG is shedding in its attempt to pay back the massive $180 billion government bailout. Recently, AIG sold off a majority of its stake in Transatlantic(TRH), plans to shutter its New York City headquarters, and sell its consumer-finance operations in Argentina.

In total the insurer has eliminated about 17 assets resulting in more than $6 billion.

Other subsidiaries up for grabs include Stowe Mountain Resort and International Lease Finance, its aircraft leasing arm.

On Thursday, AIG announced that it had entered into a deal to reduce debt owed to the Federal Reserve Bank of New York. That transaction will help slash AIG's debt owed under a Fed credit facility by $25 billion. AIG has a current $40 billion balance under the facility.

Shares in the company were flat Thursday morning, trading at $1.43.

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