AIG Seeks Buyer for $2 Billion Life Settlements Portfolio
AIG still has some assets to unload.

American International Group Inc (AIG) , the largest commercial insurer in the U.S. and Canada, is said to be working with Goldman Sachs (GS) to find a buyer for its $2 billion life settlements portfolio, Reuters reported.

Private equity firm Apollo Global Management LLC (APO) has looked at buying some of the policies, which are typically sold by elderly or terminally ill policyholders who need cash, sources say. Investors snap up the life settlements, hoping to pay less for the policy than they'll get when the customer dies.

Blackstone Group LP (BX) has purchased similar death benefits packages from AIG in the past.

The potential sale comes as AIG nears the end of a decade-long string of divestitures that cut its balance sheet in half. New CEO Brian Duperreault has renewed focus on core commercial and consumer businesses, but there is still a small portion of "legacy" assets AIG is trying to wind down, including the life settlements.

The Deal, a sister publication of TheStreet, reported last week that AIG had retained ITM Twenty First LLC, a Minneapolis-based firm that services its life settlement portfolio, to run an auction for 84 policies dubbed the "Gold Portfolio" with $523.7 million in death benefits.

AIG stock was up 0.5% to $63.21 in early afternoon trading Tuesday.

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