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AIG’s Alico would be “great deal” for MetLife

20 January 2010

MetLife’s rumoured deal for AIG’s Alico subsidiary would be a good deal for the US life insurance firm, according to an equity analyst.

Read more: metlife american international group aig alico American Life Insurance Company aia

MetLife’s rumoured deal for American International Group (AIG)’s American Life Insurance Company (Alico) subsidiary would be a good deal for the US life insurance firm, according to an equity analyst.

Reports surfaced yesterday (January 19) that MetLife is in final negotiations to buy Alico for between $14bn and $15bn. Alico is AIG’s foreign life operations in Japan, Europe, Middle East and Latin America.

AIG’s stated plan is to transfer the shares of Alico and American International Assurance, another life insurance unit, into special purpose vehicles ahead of potential initial public offerings.

In a research note, Alan Devlin, equity analyst at Atlantic Equities, said that MetLife’s rumoured deal price for Alico is “very attractive” given the recovery in markets since July last year.

“We believe Alico would be a great deal for Met,” he wrote. “While AIA is viewed as...


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