U.S. Betting on Turnaround in AIG Foreign Life Insurance

U.S. taxpayers' latest investment, a stake in American International Group's (AIG) foreign life insurance operations, appears to be in dire need of a turnaround.

AIG said Monday it will transfer a preferred interest in its main foreign life insurance businesses, American Life Insurance Co., or Alico, and American International Assurance Co., Ltd., or AIA, to the Federal Reserve in return for a $26 billion or so reduction in the amount AIG owes the government. AIG will operate them until the market improves enough for a sale or spinoff, when both sides will settle up.

U.S. Betting on Turnaround in AIG Foreign Life Insurance
Source: CNN Money