American International Group Inc. said Friday it has agreed to sell its stake in Ascot Underwriting Holdings Ltd. and related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board (CPPIB), in a deal valued at $1.1 billion. AIG said it will receive net proceeds of $240 million in cash proceeds from the deal, after CPPIB recapitalizes syndicate funds. Ascot and AIG founded the managing agency and syndicate in 2001. AIG will keep its strategic partnership with Ascot Underwriting Bermuda Ltd. AIG shares were not yet active in premarket trade, but are down 5.5% in the year so far, while the S&P 500 has gained 5%.
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