AIG is understood to have lowered its valuation for the planned initial public offering of its Asian life insurance business, AIA, to secure a $1bn (£631.6m) commitment from the Kuwait Investment Authority and other cornerstone investors.
American International Group is thought to have initially aimed to sell shares in AIA at a level that would value the company at $35bn to $37bn, but cut the valuation in order to get Kuwait’s sovereign wealth fund on board.
The sovereign wealth fund signed up to the IPO on the basis that AIA would be valued between $30bn and $32bn.
Other big investors, including a number of Hong Kong tycoons, have also signed up for cornerstone stakes.
City A.M. Reporter