Advertise
Resources
Member, Beacon International Group, Ltd.
NEW YORK—American International Group Inc. is in talks to sell one of its largest life insurance units to MetLife Inc., a published report said Tuesday.
The Wall Street Journal reported that MetLife would pay between $14 billion to $15 billion for American Life Insurance Co. in a deal that could close in several weeks, but also said the deal could fall apart, citing people familiar with the discussions who said some “material issues” remain that could scuttle the deal.
If successful, the sale would be one of the largest sales to date for AIG, which has been selling noncore assets to repay a federal rescue package of about $182 billion. The report said roughly $9 billion from the ALICO sale would go toward repaying the government loan.
In December, the New York-based insurer closed two debt-for-equity swap transactions with the Federal Reserve Bank of New York, which transferred ALICO and another AIG life insurance unit, American International Assurance Co., to a special-purpose vehicle that positioned the units for a sale or initial public offering.
AIG declined to comment.