MetLife buys AIG's Alico in $15.5bn deal

AIG is selling its American Life Insurance Company (Alico) business to rival MetLife for $15.5bn (£10.3bn), as part of its continued efforts to pay off its federal bail-out.

MetLife is paying $6.8bn in cash and $8.7bn in shares for Alico, which operates in more than 50 countries. The announcement comes a week after AIG agreed to sell its Asian business AIA to Prudential for $35.5bn. MetLife is currently the largest life insurer in the US and the purchase of Alico will boost its presence in Japan, the Middle East, Latin America, and central and eastern Europe. The insurer expects the purchase to increase its 2011 operating earnings per share by $0.45 to $0.55 per share, and enable it to increase its estimated 2011 year-end operating return on equity by 140...