AIG to sell three Japanese life businesses

by Gill Montia

Story link: AIG to sell three Japanese life businesses

Troubled US insurer, American International Group (AIG), says it will be including three of its Japanese life insurance units in its programme of disposals.

The businesses for sale are Alico Japan, AIG Edison Life Insurance Co and AIG Star Life Insurance Co; Japanese analysts estimate they could be worth over $9.5 billion in total.

In mid-September, AIG was rescued from the brink of collapse by an $85 billion loan facility from the US Federal Reserve.

The group is currently selling assets worldwide, having offloaded its stake in London City Airport to Global Infrastructure Partners at the end of last week.

AIG is understood to be restructuring itself around its core property and casualty insurance business and will therefore retain its casualty operations in Japan.

A number of Japanese insurers are reported to be interested in acquiring the businesses, while in Europe, Prudential and Allianz may be weighing up the benefits of such a move.