AIG Board Said to Approve Sale of Non-U.S. Life Unit to MetLife

March 6 (Bloomberg) -- American International Group Inc.’s board of directors approved the sale of a non-U.S. insurance division to MetLife Inc., according to two people with knowledge of the matter.

An agreement to sell AIG’s American Life Insurance Co. may be announced as soon as this weekend, said the people, who declined to be identified because the vote was private. The price under discussion had been about $15 billion, other people with knowledge of the situation said.

The deal to divest Alico, which operates in more than 50 countries including parts of Europe, Latin America and Japan, would be AIG’s second involving an overseas life unit this month. The insurer said March 1 it will sell AIA Group Ltd., with customers in nations including China, India and Vietnam, to Prudential Plc for $35.5 billion. AIG is auctioning assets to repay a U.S. rescue that swelled to $182.3 billion.

“AIG’s foreign life insurance operations have always been one of the company’s crown jewels,” Chief Executive Officer Robert Benmosche said in a Feb. 26 letter to shareholders. “Alico is a global leader in life insurance, with operations in 54 countries serving 19 million customers.”

AIG’s board met and approved of the sale on March 5, the two people said. Christina Pretto, a spokeswoman for AIG, declined to comment. Christopher Breslin of New York-based MetLife didn’t return a call seeking comment.

Excluding Alico, AIG has secured deals to raise more than $47 billion since its 2008 bailout, including the $35.5 billion sale of AIA. The company has also agreed to sell a U.S. auto insurer, an asset manager and a reinsurer.

AIG’s approval came after it was told by the Internal Revenue Service that it doesn’t owe taxes on life insurance sold to non-U.S. customers through Alico, said a person with knowledge of the matter.

The talks for Alico were stalled in February over uncertainty regarding the tax. Delaware-based Alico had said the tax didn’t apply because more than 80 percent of its business was outside the country, the person said.