Sept. 26 (Bloomberg) -- American International Group Inc. said the Asian unit it’s going to divest in an initial public offering likely will have pretax operating profit of at least $2 billion for the fiscal year ending Nov. 30.
AIG is turning to an IPO after a $35.5 billion agreement to sell AIA Group Ltd. to Prudential Plc collapsed in May. Hong Kong-based AIA had about $1.84 billion in pretax operating profit in 2009, Prudential said in a March filing.
The American insurer is selling non-U.S. life insurance businesses after a $182.3 billion U.S. bailout in September 2008. AIG disclosed the profit forecast yesterday after providing it to certain analysts.
“We believe that, in the absence of unforeseen circumstances, and, on the bases and assumptions set forth below, our consolidated operating profit for the fiscal year ending 30 November 2010 is unlikely to be less than $2 billion,” the company said in a document released yesterday.
AIG also said AIA’s annualized new premiums gained 5 percent to $1.39 billion in the nine months ended Aug. 31, and total weighted premium income rose 11 percent to $9.33 billion in the same period.
On Aug. 6, AIG said second-quarter operating profit rose 17 percent, fueled by U.S. life insurance results. Net adjusted income of $1.34 billion, or $1.99 a share, rose from $1.14 billion, or $1.71, a year earlier. That was double the average estimate of two analysts surveyed by Bloomberg.
Chief Executive Officer Robert Benmosche told employees in a memo that day that the company has begun talking to regulators about “the process and terms of a complete government exit.”
AIG rose $1.40 to $36.47 in New York Stock Exchange composite trading on Sept. 24. The stock is up 22 percent year to date.
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