American International Group, the embattled US insurer, said yesterday it had completed its sale of a majority of the US life insurance premium finance business of AIG Credit and AI Credit Consumer Discount Company to First Insurance Funding Corp.

The business, which makes loans to wealthy life insurance buyers, was sold for about $679.5 million in cash. FIFC is a subsidiary of Wintrust Financial, a business based in Illinois.

Under the terms of the transaction, if certain conditions are met, FIFC will purchase certain specified additional life insurance premium finance assets for $61.2 million, AIG said in a statement.

Blackstone acted as financial advisor to
AIG on this transaction.

AIG is being dismantled after the insurer got a $182.5 billion government bailout. It has already sold off a number of business units, including its private bank.