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Sale of AIG Advisor Group Seems Doubtful as Reps Head for Exits

Sale of AIG Advisor Group Seems Doubtful as Reps Head for Exits

00:00 01 June in In the News

by Josh Kosman and featured in New York Post
June, 2009:

American International Group’s efforts to sell its broker-dealer business, AIG Advisor Group, have hit a snag — and it’s causing jitters among the firm’s 6,000 representatives and financial advisers. Division CEO Arthur Tambaro in April said that AIG was in final discussions with a potential buyer. But two months later, no deal has been struck. What’s more, two sources told The Post that mutual-fund giant Fidelity Investments considered providing financing for an unnamed bidder, but backed out. Fidelity declined to comment. The lack of a deal for AIG Advisor Group has already led to some departures among its staff, and some say if a deal isn’t struck by year-end more than half of the company’s employees may head for the exit. Jonathan Henschen, who runs Henschen Associates, a firm specializing in placing independent advisers, said that so far, between 10 percent and 20 percent of AIG Advisor’s reps have bolted. AIG Advisors, which includes Royal Alliance Associates of New York, generated $1.3 billion in 2007 revenue. A sale would likely attract several hundred million dollars.