[Update Aug. 15: Story updated to show AIG closed the deal on Monday after the original article went live]
American International Group sold its mortgage-guaranty unit United Guaranty to Arch Capital Group for about $3.4 billion, according to an article in The Wall Street Journal by Leslie Scism and Joann Lublin.
From the article:
AIG’s mortgage-insurance operation, with about 20% market share in the U.S., has been one of the company’s star performers of late. But it is considerably smaller than AIG’s other businesses and has long operated as a separate entity. That makes it easier to divest than other parts of the company—one of the world’s biggest property-casualty businesses with a leading U.S. life-insurance operation—as it seeks to slim down and make good on the ambitious capital-return pledge.
The Bloomberg report states that United Guaranty’s initial public offering is currently slated to be for $100 million but notes that the amount could possibly change.