Insurance firms Axa S.A., MetLife Inc. and Prudential Plc., as well as China’s sovereign wealth fund CIC, are all in talks to buy a unit of U.S. insurance firm American International Group in a deal that is likely to fetch $10.8 billion, financial industry sources said on Wednesday.
- Each of the four firms is in separate talks with AIG about buying its unit, American Life Insurance Co, or Alico, and the deal is likely to close in the new year, said the sources, who spoke on condition of anonymity.
- AIG, once the world’s largest insurer by market value, is looking to shed assets around the globe to repay a $152 billion U.S. government rescue package.
On top of that, it owes around $10 billion to other financial services firms for trades that have gone sour, the Wall Street Journal reported this week.
Alico has operations in 55 countries, including Japan, where it generates more than half of its revenue. The firm is Japan’s fifth-largest life insurer in terms of revenue. (more…)