Berkowitz bullish on AIG and spinoff AIA: Bloomberg

Mutual fund manager Bruce Berkowitz, the second largest stakeholder in American International Group (NYSE:AIG), is bullish on both AIG and its spinoff AIA, according to Bloomberg interviews.

Berkowitz said when the U.S. government (the largest shareholder in AIG) sells its stake of the company, he would love to buy more.

Furthermore, Berkowitz has stepped out of his US-centric approach and invested in shares of American International Assurance (AIA) ( HKG:1299) and China Pacific Insurance (HKG: 2601), two insurance companies in Asia.

American International Assurance was formerly a unit of AIG that was spun off in 2009.

Berkowitz said that with a growing Asian middle class, there is greater need for life insurance. Moreover, with the maturation of financial markets in Asia, the climate is bullish for Asian insurance companies.

As for AIG, he said the company fetched a good price for the sales of 'crown jewel' units like American International Assurance. Plus, such actions were necessary to raise funds to repay US taxpayers.

Now, it's time for AIG to "move on" and "rebuild," said Berkowitz.

Correction: Previously, this article erroneously stated that Berkowitz is a hedge fund manager when in fact he is a mutual fund manager.

Email Hao Li at hao.li@ibtimes.com

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