AIG’s ‘Tainted Brand’ In U.K. Hurts Life Insurer Unit

American International Group Inc. suffered an 87 percent quarterly sales decline at its European life business as U.K. clients abandoned the firm, draining value from operations the insurer is selling to repay a U.S. bailout. AIG halted withdrawals on its Premier Access Bond investment offering in the U.K. last year, and the closure drove third-quarter European premiums and deposits to $256 million from $1.97 billion a year earlier. The investment, promoted to savers who wanted “easy access” to funds, was marketed by banks including Coutts & Co., which counts Queen Elizabeth II among its clients.