Prudential Financial has signed a definitive agreement to acquire American International Group's (AIG) Japan-based life insurance subsidiaries AIG Star Life Insurance and AIG Edison Life Insurance for $4.8bn.
The purchase amount $4.8bn comprises approximately $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.
Prudential Financial chairman and CEO John Strangfeld said that the addition of these operations to the existing businesses in Japan will increase the company’s presence and offers opportunities to provide quality service to more customers. We look forward to working with the management and employees of Star and Edison to ensure a smooth transition.
However, the transaction is subject to regulatory approval, and expected to be completed during the first quarter of 2011.