AIG to sell mortgage-insurance unit for $3.4B

American International Group Inc. is reportedly nearing a deal to sell its mortgage-guaranty unit to Arch Capital Group Ltd. for about $3.4 billion.

People familiar with the matter told Dow Jones Newswires the deal could be reached as early as this week.

The sale of United Guaranty could help AIG meet its goal of returning $25 billion to shareholders.

Read more from Dow Jones Newswires.