American International Group Inc. announced Monday afternoon that it has agreed to sell its United Guaranty Corporation mortgage-insurance business to Arch Capital Group for $3.4 billion. The deal, reported earlier Monday by The Wall Street Journal, is for $2.2 billion in cash, with the rest paid in Arch stock. In the announcement, AIG Chief Executive Peter Hancock called the move "an important milestone" in his plan to streamline AIG and focus on core businesses. AIG shares gained 0.6% Monday to $59.22, while Arch Capital stock added 3.1% to $77.09; both stocks were flat in late trading following confirmation of the deal.
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