RSA to widen reach, may bid for AIG, Fortis units

LONDON: RSA Insurance Group is planning to bid for the distressed units of AIG and Fortis, which will be funded using the proceeds of ��614 million ($1 billion) rights issue, The Sunday Telegraph reported.

RSA has appointed JP Morgan and Merrill Lynch to prepare a potential capital-raising to help fund expansion across continental Europe and Latin America, the report said, without citing sources.

RSA has instructed bankers to examine AIG���s Latin American businesses and Fortis Insurance International, which operates across Europe and Asia, said the report. RSA declined to comment when contacted.

Meanwhile, AIG, the insurer bailed out by the US government, said on Saturday that it had reached a deal to sell a portion of its asset management business to a Hong Kong-based investment firm for $500 million.

The sale to Bridge Partners, which is owned by Pacific Century Group, includes about $300 million in cash at closing, additional future consideration that includes a performance note and a continuing share of carried interest.

The sale is just the latest for the troubled insurance giant. AIG is trying to sell assets to repay billions of dollars in federal loans.

The loan package, which helped the company avoid failing, was worth up to $182.5 billion.