Prudential Financial has signed an agreement to acquire japan-based AIG Star Life Insurance and AIG Edison Life Insurance Company from American International Group (AIG) for a total purchase price of $4.8bn.
Prudential said that the $4.8bn amount comprises $4.2bn in cash and $0.6bn in the assumption of third party debt, substantially all of which is expected to be repaid with excess capital of the acquired entities.
In addition, the policies and rights of Star and Edison customers will not be affected by the transaction.
The transaction is expected to close during the first quarter of 2011 and is subject to regulatory approval.
Prudential Financial chairman and CEO John Strangfeld said that the addition of these operations to the company’s existing businesses in Japan will increase its presence and give its opportunities to provide quality service to customers.