Winter sun

19 January 2010 By Lauren Silva

Boss Robert Benmosche was right to wait. And he’s right to offload the unit now rather than hang on for an IPO, which would only sell part of Alico. MetLife is set to pay a decent price given AIG s need to sell. And taxpayers will get $9 bln back. But the dark days aren’t over.

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MetLife is in final negotiations to buy American International Group's American Life Insurance division, or Alico, for between $14 billion and $15 billion, according to the Wall Street Journal. About $9 billion of the proceeds would go to the U.S. government, according to the report.

On June 25, 2009, the Federal Reserve Bank of New York said it would exchange $25 billion of loans for preferred equity stakes in Alico and American International Assurance, or AIA. The Alico interest was valued at $9 billion.

On Aug. 3, 2009, AIG's board elected Robert Benmosche president and chief executive officer of the company, replacing Edward Liddy.

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