AIG completes $16bn sale of Alico to Metlife

TROUBLED US insurer American International Group (AIG) announced the sale of its life insurance business America Life Insurance Corporation (Alico) to Metlife yesterday in a deal worth $16.2bn (£10.1bn).

The sale means AIG has now raised $37bn towards repaying US taxpayers after the government launched a $180bn bailout package to save the company in 2008.

AIG will receive $7.2bn in cash and a further $9bn in Metlife shares.

Robert Henrikson chief executive of Metlife said: “With our acquisition of Alico complete, MetLife has become the premier global life insurance and employee benefits powerhouse.”

Robert Benmosche, chief executive of AIG, said: “We promised the American taxpayers we would repay them and the initial public offering of AIA last week and the completion of the Alico transaction moves us closer to delivering on our promise.”

Last month AIG listed its Asian unit AIA on the Hong Kong stock market, raising $20.5bn for the insurer, the bulk of which will go to the US Treasury. The listing came after Prudential backed out of a deal to buy AIA for $35.5bn earlier this year.