9 Mar 2010

AIG sells insurance business to rival

3:11 pm on 9 March 2010

US-based AIG is selling an overseas insurance business to rival MetLife for $US15.5 billion, as it continues to raise funds to pay off a federal bail-out.

MetLife is paying $US6.8 billion in cash and $US8.7 billion in shares for American Life Insurance Company, or Alico, which operates in more than 50 countries.

The announcement comes a week after AIG agreed to sell its Asian business AIA to UK group Prudential for $US35.5 billion.

AIG is seeking to repay $US182 billion of loans from the American government.