Will AIG sell L.A. firms?

Lots of mixed signals on what, if anything, insurance giant American International Group intends to do with Woodland Hills-based 21st Century Insurance Group and Century City-based International Lease Finance, the big aircraft leasing company. AIG is trying to get some relief from the Federal Reserve - perhaps with a $40 billion emergency bridge loan - to help it avoid a credit rating downgrade. That would make it more expensive for AIG to raise money (some say a credit downgrade would be devastating). Meantime, there are all kinds of discussions about selling off assets. The LAT reports that AIG has decided against selling ILF, though 21st Century still appears to be on the table. A 21st Century sale would have a much bigger local impact than ILF. There also are all kinds of state regulatory issues in play. Here are the backstories for both companies, from the Times.

Primarily an auto insurer that sells directly to consumers, 21st Century was started in 1958 as a one-man operation by Louis W. Foster. It also sells homeowners insurance. In September 2007, AIG, which owned 62% of 21st Century, bought the remainder for $813 million, valuing all of 21st Century at more than $2 billion. The combination of AIG Auto Insurance and 21st Century created a top 10 auto insurer with more than 3.5 million vehicles covered.

International Lease Finance owns more than 950 planes, which it leases to airlines. The fleet is valued at nearly $50 billion. The company is the biggest buyer of commercial passenger jets made by Boeing Co. and European Aeronautic Defence Defense & Space Co.'s Airbus. AIG acquired the business in 1990 and let its co-founder, Steven Udvar-Hazy, help run the unit. Udvar-Hazy, who became a major shareholder of AIG as a result of the sale, helped form the company in 1973.