AIG in talks to sell Lloyd’s insurance business to CPPIB: Reuters

American International Group Inc (AIG.N) is in early talks to sell Lloyd’s of London Ltd‘s (SOLYD.UL) insurance operations to Canada Pension Plan Investment Board, the Wall Street Journal reported on Tuesday.

If the deal comes through, it could fetch the insurance conglomerate hundreds of millions of dollars in proceeds, the Journal reported, citing people familiar with the matter.

CPPIB is also in talks to buy a related reinsurance company based in Bermuda, the Journal reported.

AIG declined to comment, while CPPIB could not be immediately reached.

AIG, the largest commercial insurer in North America, has been cutting jobs and trying to restructure its business as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn, who had urged the company to break into three.

The insurer said last week that it would sell its mortgage-guaranty unit to Arch Capital Group Ltd (ACGL.O) for about US$3.4 billion.

CPPIB, which manages Canada’s national pension fund, had said earlier this month that Britain’s decision to leave the European Union had curbed gains in its investments during the latest quarter would create more uncertainty down the line.

Update: Earlier this year, AIG sold broker-dealer network AIG Advisor Group to U.S. private equity firm Lightyear Capital and Canada’s Public Sector Pension Investment Board (PSP Investments).

(Reporting by Nikhil Subba in Bengaluru; Editing by Shounak Dasgupta and Savio D’Souza)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Reuters/Brendan McDermid