AIG places tech unit Blackboard into run-off

American International Group (AIG) has decided to place its technology-driven subsidiary Blackboard US Holdings into run-off.

AIG will recognise a pre-tax loss of $210 million, primarily consisting of asset impairment charges in connection with the run-off.

The company said that the decision was made at the end of March. Hence, it did not impact the adjusted pre-tax income in the first quarter of 2020.

AIG's general insurance business reported a pre-tax underwriting loss of $87 million, including $272 million of estimated COVID-19 losses, in Q1 2020.

Blackboard formerly operated under the Hamilton USA brand and was acquired by AIG in 2017.

Blackboard recently secured approval for its commercial insurance package in Washington and Virginia, expanding its capabilities to middle market customers in 47 US states and territories.