AIG to sell some Latin America, European units to Canada's Fairfax

October 18, 2016 8:41 AM EDT

People exit the AIG building in New York's financial district March 19, 2015. REUTERS/Brendan McDermid

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(Reuters) - U.S. insurer American International Group (NYSE: AIG) said on Tuesday it would sell some businesses in Latin America and central and eastern Europe to Canada's Fairfax Financial Holdings Ltd (NYSE: FFH) for about $240 million in cash.

AIG, which has been under pressure from shareholders including billionaire Carl Icahn to slim down, said it would sell commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey.

Fairfax will also acquire renewal rights for a portfolio of business written by AIG's central and eastern European operations, AIG said.

In August, AIG sold its mortgage-guaranty unit to Arch Capital Group Ltd (NASDAQ: ACGL) for about $3.4 billion. Last month, it sold its Lloyd's of London platform, Ascot, to the Canada Pension Plan Investment Board in a deal valued at about $1.1 billion.

(Reporting by Richa Naidu in Bengaluru; Editing by Savio D'Souza)

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