INSURANCE

Stake in Alexander & Alexander Sold: The loss-plagued insurance broker said American International Group Inc. agreed to buy $200 million of a new issue of Alexander & Alexander Services Inc.’s preferred stock. The move does not signal an attempt at a takeover, both companies said. The stake is convertible into 21% of A&A; non-voting common stock. American International, which is also an insurance broker, agreed not to buy any more stock for eight years and not be represented on the A&A; board. Alexander & Alexander said the investment will be used to strengthen its core insurance business and finance reinsurance. Both firms are based in New York.