AIG Europe, a subsidiary of troubled insurance giant American International Group Inc (AIG), has raised EUR680 million through a capital increase comprising cash and subordinated debt, the chief executive of AIG France said at a presentation Tuesday.

The capital increase will ensure the group's future development, boost its solvency levels and will be announced in the following days, AIG France's CEO Nicolas Aubert said.

Aubert also reiterated earlier comments from AIG executives that property and casualty will be the company's future core activities and as a result AIG Europe and AIG France aren't part of the parent company's worldwide asset disposal plan.

-By Nicolas Parasie, Dow Jones Newswires; +33 1 4017 1740; nicolas.parasie@dowjones.com

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