AIG 'closes in on $15bn deal to sell ALICO'

5 March 2010

American International Group (AIG) is close to a deal that will see the company sell ALICO, its foreign life insurance unit, to MetLife for a figure believed to be in the region of $15 billion, insiders have said.

An agreement may be reached as early as this weekend, one source told Reuters.

The proposed deal follows hot on the heels of AIG's sale of its AIA unit to Prudential Insurance for $35.5 billion, which was announced earlier this week.

AIG is carrying out the divestment of its assets as part of fundraising plans designed to pay back the US government for the $182 billion it has received in bailout funds since the start of the financial crisis.

When the AIA sale was confirmed earlier on Monday, Bob Benmosche, chief executive officer and president of AIG, said that the move had been part of a strategy designed to enable the company to repay US taxpayers more quickly.

By Gary Cooper

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