American International Group Inc said Thursday it has completed the sale for $263 million to Bank of Montreal's BMO Financial Group, according to the reports.
The deal was close late Wednesday, is part of New York-based insurance giant’s restructuring plans, which was announced in January, to pay its loan as it received $182.5 billion in financial support from the government since September due to market conditions.
With the sale, it also expects to strengthen BMO Life's competitive position, giving immediate scale and capabilities in the life insurance market.
Bill Downe, president and chief executive officer of BMO Financial, said, Acquiring AIG Life of Canada will strengthen BMO's overall financial planning, wealth and retirement offering, giving us the ability to expand our client relationships through a comprehensive line up of products.
It also said that on Tuesday, AIG completed its sale of Hartford Steam Boiler to the Munich Re Group for $739 million, plus the assumption of $76 million of outstanding HSB capital securities.
AIG shares rose 7 cents or 6.54% at $1.14, while share of BMO up $1.10 cent or 4.10% at $27.93 at the trading.