[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.

Back in March, American International Group said it planned to take United Guaranty public later this year, ceding to pressure from activist investors, according to a report from Bloomberg.

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.

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