Insurers, China eye AIG's Alico

Three insurance firms and China's state fund are in talks with American International Group Inc. over the takeover of its life insurance unit American Life Insurance Co., sources said.

Alico, headquartered in the U.S., operates in 55 countries, including Japan.

AIG, which is undergoing rehabilitation under the control of the U.S. government, will accept bids early next year to sell Alico for about ¥1 trillion, the sources said.

The three insurance firms — France's Axa SA, Metropolitan Life Insurance Co. of the United States and Prudential PLC of Britain — are all considering purchasing Alico, while China Investment Corp. has also shown strong interest in acquiring AIG's insurance unit, according to the sources.

While Axa and MetLife intend to acquire Alico's entire global operations, including in Japan, Prudential is considering purchasing only certain parts, including its Asian operations excluding Japan, the sources said.

The four parties are in discussions about the takeover with AIG, which is examining proposed purchase prices and business plans, the sources said.

AIG also plans to sell its two other life insurance units in Japan — AIG Edison Life Insurance Co. and AIG Star Life Insurance Co.