NEW YORK (AP) — The insurer American International Group Inc. said Monday that it has completed its purchase of a securities brokerage from Hartford Financial Services Inc.
AIG agreed to buy Woodbury Financial Services on July 31. Woodbury is based in Oakdale, Minn., manages $125 billion in assets, and employs around 6,000 financial advisors.
AIG did not disclose the price of the purchase, but Hartford CEO Liam McGee told The Wall Street Journal this year that the deal could be worth as much as $90 million based on Woodbury’s financial performance.
Woodbury will become part of SunAmerica Financial Group, AIG’s U.S.-based life and retirement insurance business. The deal is SunAmerica’s first acquisition since the 2008 financial crisis, when AIG received $182 billion in bailout funding from the federal government. AIG is half the size it was prior to the financial crisis, but has been profitable for the last two years.
The federal government turned a profit of about $15 billion on the bailout of AIG, and while the U.S. Department of the Treasury still owns stock in the company, it is no longer AIG’s majority shareholder.
Shares of AIG rose 29 cents to $33.42 in morning trading, and Hartford shares slipped 7 cents to $21.11.