Mountain Insurance brokers just recieved news that American International Group closed the deal to sell its foreign unit American Life Insurance Company to MetLife for $16.2 billion in cash and MetLife shares.
The MetLife securities will be sold over time, subject to certain lock-up provisions and market conditions, to provide additional funds to repay the government, A.I.G. said.
Added to the $20.5 billion from the initial public offering of A.I.A. , that brings the bailed-out insurers take to $36.7 billion, a major step toward paying down the many billions it still owes Washington.
The Treasury Department said in response to the A.I.G statement that it would provide an additional $22 billion in Troubled Asset Relief Program funds to buy the New York Federal Reserves stake in the special purpose vehicles that hold the A.I.G. The Treasury Department said in response to the A.I.G statement.
The restructuring will bring the Treasurys stake in A.I.G. to 92.1 percent, and the 1.66 billion shares of A.I.G. common stock it owns are worth $69.5 billion, it said, far in excess of its $47.5 billion cash investment in the company.
Treasury said it was set to earn a profit on its loans to and investments in AIG assuming the restructuring announced on September 30 is completed.
Nevertheless, that $47.5 billion is only a fraction of the total bailout. The restructuring is expected to finish by the end of the first quarter next year after which, Treasury can sell A.I.G shares on the market.
As we said on September 30, AIG will restructure itself around its core property casualty and life and retirement services businesses, which are performing well, Robert Benmosche, A.I.G.s chief, said.
Alico operates in more than 50 countries in Asia, the Middle East and Europe, and with its acquisition, MetLifes operations will extend to 60 countries and 90 million customers, it said in a statement.
With the acquisition of Alico complete, MetLife has become a major employee benefits powerhouse.