AIG sells Alico to MetLife, AIG will still be 2nd largest shareholder of MetLife

New York: AIG sells Alico to MetLife, AIG will still be 2nd largest shareholder of MetLife. The American International Group Inc., has come up in an agreement with the MetLife Inc., to sell its second-largest foreign life insurance firm, American Life Insurance (Alico). The deal will give AIG a $6.8 billion in cash and $8.7 billion in MetLife equity, which will include common stock and convertible preferred securities, with totally having 20% stake in MetLife.  

Thus, AIG will be the second-largest shareholder of MetLife. AIG is a government-supported insurance firm with almost 80% shares owned by U.S. government. AIG has been supported by a string of bail-out packages by the U.S. government, when it was largely hit by the financial crisis in 2008. While, MetLife was almost safe in time of financial fall.
 
According to the deal, AIG will not have voting right in the MetLife's operations and bushiness decisions. At the same time, it is reported that the State Insurer will be exposed to MetLife's fortunes over nine months to two-and-a-half-years, which is the minimum period for which  AIG cannot sell its shares. The deal has set that AIG can only sell its cash equities when the MetLife's shares perform well.
 
It is now the second deal for AIG in two weeks. The American Insurer has sold its Asian hand, American International Assurance Ltd., to British insurer Prudential PLC for $35.5. With these two deals, AIG is looking forward to payback $32 billion in cash to The Federal Reserve Bank of New York, which rescued the insurer during the financial crisis.
 
With the deal is over, CEO of AIG, Mr. Benmosche said that the company wants to focus more on its global property-and casualty-business and domestic life insurance business. The company also expects to sell some of its other services like aircraft-leasing firm International Lease Finance Corp., in the future, he added.