MetLife set to snap up Alico in £10bn deal

AMERICAN insurance giant MetLife is on the brink of finalising a $15bn (£9.8bn) deal to take over AIG’s Alico.

It is expected the two will announce the deal today, which will see MetLife buy AIG’s second largest foreign life insurance arm, American Life Insurance Company (Alico).

MetLife is understood to be offering AIG $7bn (£4.6bn) in cash for Alico and the rest in shares.

The deal was expected to close a few weeks ago but suffered from delays because of tax issues.

The deal will bolster MetLife, allowing it to move swiftly up the ranks of global insurers.

The Alico acquisition will give MetLife access to 19m life insurance customers in Chile, Russia, Brazil, Japan and Eastern Europe, moving its business outside of US borders.

The deal marks the second largest sale by the stricken insurer this month after AIG earlier announced it would be selling off its Asian business, American International Assurance (AIA), to Prudential for $35.5bn (£23bn). The sale will significantly boost Prudential’s Asian footprint.

AIG is currently en route to paying back the $85bn (£56bn) bailout it took from the Federal Reserve at the height of the crisis.

Neither MetLife nor AIG were available to comment.