American International Group said late Tuesday that it will sell two companies in its American General family of companies to White Mountains Insurance, an insurer that has been active in buying so-called runoff businesses.
Connecticut-based White Mountains will pay about $35 million for American General Indemnity and American General Property Insurance. The acquisition, which needs the approval of regulators in Tennessee and Illinois, is expected to close during the third quarter. American General Property is headquartered in Brentwood, where its parent company employs about 800 people.
Insurance companies that are in runoff operations are no longer underwriting new policies and instead focusing only on servicing existing customers until those policies expire. White Mountains Solutions, the division buying the American General companies, has completed seven acquisitions of such businesses and last week announced its eighth.
NashvillePost.com contacted AIG representatives for details about the impact of the sales and will update this story with any additional information.