UPDATE 1-AIG in talks to sell Lloyd's insurance business to CPPIB-WSJ

Tue Aug 23, 2016 1:57pm EDT
 
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(Adds background, CPPIB declining to comment)

Aug 23 (Reuters) - American International Group Inc is in early talks to sell Lloyd's of London Ltd's insurance operations to Canada Pension Plan Investment Board (CPPIB), the Wall Street Journal reported on Tuesday.

If the deal comes through, it could fetch the insurance conglomerate hundreds of millions of dollars in proceeds, the Journal reported, citing people familiar with the matter. (on.wsj.com/2bfo1gj)

CPPIB is also in talks to buy a related reinsurance company based in Bermuda, the WSJ reported.

AIG and CPPIB declined to comment.

AIG, the largest commercial insurer in North America, has been cutting jobs and trying to restructure its business as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn, who had urged the company to break into three.

The insurer said last week that it would sell its mortgage-guaranty unit to Arch Capital Group Ltd for about $3.4 billion.

The CPPIB, which manages Canada's national pension fund, had said earlier this month that Britain's decision to leave the European Union had curbed gains in its investments during the latest quarter would create more uncertainty down the line. (Reporting by Nikhil Subba in Bengaluru; Editing by Shounak Dasgupta and Savio D'Souza)