The sale of AIG’s Irish unit would lead to significant increases in insurance premiums, according to reports

Irish brokers expect premiums to rise across the industry in the wake of the rescue of insurance giant AIG by the Federal Reserve, reports the Irish Times.

The newspaper suggested that AIG’s Irish unit might be put up for sale, following indications from the Fed that the stricken insurer would sell off certain parts of its business.

AIG Ireland Ltd reportedly said that the business operates as a stand-alone entity and has enough assets to meet its obligations.

According to the paper the Irish Brokers' Association said the volatility would lead to ‘significant’ increases in insurance premiums.