AIG to sell three Japanese life insurance units

Embattled insurer American International Group (AIG) has said it will sell three of its Japanese life insurance businesses.

As part of its effort to pay off a massive US government loan, AIG has decided to unload Alico Japan, AIG Edison Life Insurance, and AIG Start Life Insurance, the company said in a statement late yesterday.

On the brink of failure last month, AIG was bailed out when the government offered it an $85 bn loan during the ongoing credit crisis that saw Lehman Brothers Holdings file for bankruptcy protection and the sale of Merrill Lynch to Bank of America. In return for the loan, the government received warrants to purchase up to 79.9 per cent of AIG.

AIG, one of the world's biggest insurers, said yesterday in New York that it would sell a number of business units around the world, though it did not specifically disclose all the assets being considered for sale or their expected prices.

A number of overseas life insurance companies are believed to be interested in buying the three Japan subsidiaries, according to the Nikkei financial daily.

AIG's Japan unit said it will retain its casualty insurance operations, in line with the company's overall plan to refocus on its core property and casualty insurance businesses.