AIG Could Sell Auto Insurance Unit: Reports

The insurer is in talks to sell its U.S. auto insurance business, 21st Century Insurance, to Zurich Financial Services, reports say.
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Insurer

American International Group

(AIG) - Get Report

is in talks to sell its U.S. auto business 21st Century Insurance to

Zurich Financial Services

, according to published reports.

The sale of 21st Century, which would valued at about $2 billion, would be AIG's biggest divestiture since its U.S. government bailout in September, according to

Bloomberg

. The companies are still working on a formal agreement, said two people familiar with the situation,

Bloomberg

reports.

AIG is looking to sell off assets to repay a government loan of as much as $60 billion that is part of the bailout.

The auto insurance business is part of AIG's U.S. personal lines unit, which includes selling products to high net-worth individuals through its private client division, according to

Reuters

. AIG CEO Edward Liddy has said the private client division is not being sold.

AIG took over the 21st Century Insurance business in 2007 when it bought out the minority stakeholders for $811 million,

Reuters

reports.

This article was written by a staff member of TheStreet.com.