(In this Feb. 21 story, corrects location of Vail Resorts Inc to Broomfield, Colorado, instead of Brookfield)
By Suzanne Barlyn
Insurance giant American International Group Inc (AIG.N) has reached a deal to sell one of its lesser-known assets: a northern Vermont ski slope.
Vail Resorts Inc, (MTN.N) a Broomfield, Colorado-based company that runs mountain resorts, has signed a $50 million agreement to buy the ski operations of Stowe Mountain Resort from AIG's real-estate business, the resort company said on Monday.
The deal, subject to review by the state of Vermont, includes everything from lift ticket offices to facilities for ski and snowboard lessons. It is AIG's latest move in a strategy to sell off assets that do not align with its core insurance businesses.
AIG, the largest commercial insurer in the United States and Canada, will continue to own other resort properties in the area and development rights, it said in a press release.
They include the tony Stowe Mountain Lodge, a luxury 312-room hotel, and the Stowe Mountain Club, an all-seasons club whose services include a 21,000-square foot spa, gourmet dining, and slope-side valet parking, according to the club's website.
The ski-slope deal follows a disappointing 2016 fourth-quarter for AIG, which last week reported a $3 billion loss.
AIG is in the middle of an ambitious two-year turnaround plan, which followed pressure from billionaire activist investors Carl Icahn and John Paulson to split up the company because of poor performance. Selling off non-core assets, like Stowe, and cutting expenses will help return $25 billion to shareholders, the insurer has said.
(Reporting by Suzanne Barlyn; Editing by Lauren Tara LaCapra and Andrew Hay)