NEW YORK (AP) — AIG says it is selling its stake in United Guaranty to Arch Capital Group in a cash-and-stock deal worth $3.4 billion.
It's part of New York-based American International Group Inc.'s ongoing effort to streamline its organization.
United Guaranty Corp. is a major private mortgage insurance company. Arch Capital, based in Bermuda, writes specialty lines of property and casualty insurance and reinsurance, as well as mortgage insurance and reinsurance.
The deal includes $2.2 billion in cash, $250 million of newly issued Arch Capital perpetual preferred stock and $975 million of newly issued convertible non-voting common-equivalent preferred stock. The transaction still requires regulatory approval.