Daily Insurance Industry News
 
 
Daily Insurance Industry News
Friday 19th of January 2018
September 30, 2010

Prudential to acquire AIG businesses in Japan

by Richard Kilner

Story link: Prudential to acquire AIG businesses in Japan

Prudential to acquire AIG businesses in Japan

American International Group, Inc. (AIG) has announced that it is to sell its Japan-based life insurance businesses subsidiaries, AIG Star Life Insurance Co., Ltd. and AIG Edison Life Insurance Company to Prudential Financial, Inc.

The deal is worth a total of $4.8bn, including $4.2bn in case and $600m in the assumption of third party debt.

AIG will retain its general insurance business in Japan.

AIG Chief Executive Officer Robert Benmosche described AIG Star and AIG Edison as important parts of the AIG family, but said that the firm had received a compelling offer from Prudential.

Benmosche also emphasised the firm’s commitment and obligations to the US taxpayer, who bailed the firm out during the recent financial crisis.

AIG Star and AIG Edison provide individuals and groups with medical, life and annuity products and have a combined staff number of 10,400.

AIG has endeavoured to repay the US taxpayer swiftly, making a number of sales over recent years.

In the second quarter, the insurer suffered a $2.7bn loss, attributed to a $3.3bn non-cash goodwill impairment charge.

 

News posted:



Related stories to Prudential to acquire AIG businesses in Japan: