The merger is put on hold to sell shares in these units along with American Life Insurance
US-based American International Group has officially put on hold the merger between two of its Japanese life insurers AIG Star Life Insurance and AIG Edison Life Insurance in order to sell shares in these units along with American Life Insurance under its global restructuring plans, reported Reuters.
The merger between AIG Star Life Insurance and AIG Edison Life Insurance was originally scheduled to take place on January 1, 2009. In October 2008, the American International Group (AIG) had said that it would delay the merger between the Japanese life insurers. The merger should reflect the intention of new shareholders, AIG said in a statement.
Following its near collapse in September 2008 under the weight of bad bets it made insuring mortgage-backed securities, as stated in the New York Times, AIG announced that it intends to dispose its businesses in Asia including Japan, Taiwan and the Philippines.
American International Group (AIG), a player in insurance and financial services, is the international insurance organisation. The member companies of AIG offer a variety of insurance, loans, and retirement products. It offers motor insurance and life insurance services and retirement planning also. AIG Retirement provides the investment products, services and expertise to build financial security.