AIG makes another big asset sale
American International Group (AIG) agreed to sell American Life Insurance (Alico) for US$15.5 billion to MetLife on Monday making it AIG's second big asset sale in a week.
Wednesday, March 10th 2010, 3:45PM
by Jenha White
MetLife operates in 17 countries and Alico in more than 50 countries, so the purchase gives MetLife a much larger presence in Japan and in high-growth markets in Europe, the Middle East and Latin America.
Last Monday AIG also agreed to sell AIA to Prudential for $35.5 billion which is the largest insurance transaction on record.
MetLife will pay $6.8 billion in cash and $8.7 billion in equity securities for Alico, AIG's second-largest foreign life-insurance business.
These sales give AIG more cash to repay the $130 billion owed to the Treasury and the Federal Reserve Bank of New York as at December 31. AIG's bailout package was originally worth up to $182.5 billion.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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