Life insurer MetLife is planning to refund nearly $190m to American International Group (AIG) following a victory by one of its units in legal proceedings filed in a Tokyo court.
The American Life Insurance Co (Alico), which won the lawsuit, was acquired by MetLife from AIG for a consideration of $16.2bn in 2010, as reported by Bloomberg.
New York-based MetLife said in a regulatory filing that the unit has collected $160m, including interest and penalties following its victory.
Without revealing the actual amount of refund, the underwriter said that MetLife is "required to remit the refund to AIG net of certain amounts it can retain as a counter claim."
AIG disposed of Alico in order to back the taxpayers’ money it received as bailout package during the 2008 financial crisis, while the MetLife planned to boost its global footprint through the deal.
In a regulatory filing, MetLife said the tax case emerged from, "unrealized foreign exchange losses on certain securities held by American Life prior to the Alico acquisition."
The filling further highlights that MetLife will sustain a $30m charge tied to the refund in the current quarter, while it will pay $60m to $85m related to exiting banking, after costs of $163m last year related to the move.