METLIFE buys ALICO
AIG Group announced on the 8th of March that it would sell its life and health insurance divisions to METLIFE. The value of the transaction is estimated at USD 15.5 billion. This move, expected by economical analysts, will help AIG to repay a part of the loan made to FED in September 2008.
This deal will transform METLIFE, the biggest life insurer in the US, from a regional presence, into one of the major global players, along with giants such as ALLIANZ, AXA and PRUDENTIAL.
ALICO is also present in Romania through a life insurance company and a pension administration company.
It is estimated that the completion of the transaction worldwide to take place by the end of 2010, if the necessary legal approvals are obtained.
"This is good news for us, news that we want to pass on to our customers and partners. Customers will have the benefit of knowing that ALICO is supported by a new strong, stable and renowned shareholder, which will give them confidence to maintain and develop their portfolio of policies with us.
Folllowing this transaction, the customers will also be ensured that their policies are still safe, that the terms and conditions of the existing policies will not be changed and that we will still maintain the relationship with their agent/broker and with our local operations", said Theodor ALEXANDRESCU, General Manager, ALICO Asigurari Romania.
"This sale is an important step toward repaying the government. ALICO is a unique international life insurer, and we view this as a terrific combination that will further enhance the company's potential over the long term. With this sale of ALICO, along with the sale of AIA to Prudential plc announced last week, we are on track to generate approximately USD 50.7 billion from these two transactions alone. In addition, both sales give AIG greater flexibility to move forward with our restructuring and rebuilding efforts, and focus on enhancing the value of our key insurance businesses", considers Harvey GOLUB, Chairman of the AIG Board of Directors.
Author: Mihaela CIRCU
on 09.03.2010
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