AIG’s tower hill car insurance deal gets the nod
The Wall Street Journal today published an article entitled AIG will acquire Tower Hill Insurance Co. in a $4.9 billion deal.
The article said that AIG was considering a $8.2 billion acquisition of Tower Hill as a way to improve its tower hill policy offerings.
The deal would include $1 billion in upfront payments and the remaining $1.2 bn will be used to buy out the remaining debt and consolidate the insurance company.
The Wall St. Journal said that the deal could close as early as September and that Aig will retain the rights to its towers and the tower hill brand.
AIG has been under fire recently over its high rates, which have led some analysts to question whether the company is a good investment for shareholders.
As of the beginning of the year, AIG reported a net loss of $821.4 billion, while net income of $1,071.9 bn was also reported.
The Wall Street Post reported earlier this year that the company had raised $1 trillion in a massive stock offering, which has resulted in higher stock prices.
Shares of Towerhill closed up 0.9% at $10.12.
Investors are looking to get more out of AIG, which is facing some of the same criticisms that have come to bear on many other large insurance companies.
The Wall St Journal also noted that the acquisition will result in the loss of approximately 6,000 jobs in the U.S. It is worth noting that the Wall Street report was not a formal announcement, and AIG has not announced any layoffs.