Posted on Mar 01, 2010 by Sergio Ulloa
London-based Financial services company, Prudential P.L.C.
is in talks over purchasing AIG
's Asian life insurance business, American International Assurance.
Although the deal has not been finalized yet, it would see Prudential buy American International Assurance or AIA
for approximately US$35.5 billion; US$25 billion in cash and US$10.5 billion in stocks.
AIG had been planning on an initial public offering for AIA since late 2009, placing the business in a Special Purpose Vehicle in which the Federal Reserve Bank of New York holds the preferred interests and AIG holding all common interests in AIA. The sale of AIA would pave the way for the largest repayment of the US$180 billion that AIG received in U.S. government bailouts, with the Federal Reserve Bank of New York prepared to receive billions from the sale.
Hong Kong-based AIA has been operating since 1919 and is a major player in the Asian life insurance market with extensive distribution networks in 15 geographical markets and over 20 million policies in-force in the region. The addition of AIA's business operations in addition to Prudential's existing 11 million policies would make Prudential a market leader in the Asian life insurance industry.
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.