AIG: Financial Winners & Losers

AIG was among the top performers Monday after the insurer struck a deal to sell its Asian unit for $35.5 billion.

By Robert Holmes , Mar 1, 2010 10:59 AM EST

NEW YORK (

) --

American International Group

was among the top performers of the financial sector Monday after the insurer struck a deal to sell its Asian unit for $35.5 billion.

AIG

shares rallied after

Prudential PLC

(PUK) - Get Report

said it will pay $25 billion in cash and $10.5 billion in new shares and other securities for AIG's American International Assurance subsidiary. The sale of the Asian unit is expected to help AIG repay bailout funds it has received from the U.S. government.

AIG shares were lately rising by $1.90, or 7.7%, to $26.67, although the insurer's stock is down more than 10% in 2010. On the other hand, Prudential PLC shares trading in New York were down 14.3% to $15.86.

Most other insurer stocks were trading higher Monday.

Prudential Financial

(PRU) - Get Report

, which is based in the U.S. and is no relation to Prudential PLC in the U.K., gained 1.1% to $53.01,

Lincoln National

(LNC) - Get Report

rose 1.1% to $25.45, and

Hartford Financial

(HIG) - Get Report

tacked on 0.7% to $24.54.

MetLife

(MET) - Get Report

, however, dipped 0.1% to $36.37.

European bank stocks were in focus after

HSBC

(HBC)

reported a full-year net profit of $5.83 billion, which rose from $5.73 billion in 2008 but was below analysts' targets. HSBC shares trading in New York dropped 7.1% to $51.03.

Among other U.K. bank stocks,

Lloyds Banking Group

(LYG) - Get Report

slid 7.1% to $3.02,

Royal Bank of Scotland

(RBS) - Get Report

was down 5.7% to $10.88, and

Barclays

(BCS) - Get Report

lost 2.9% to $18.61.

U.S. bank stocks weren't performing much better.

JPMorgan Chase