AIG Pulls Japanese Units off Auction Block

TOKYO (TheStreet) -- American International Group(AIG Quote) has put the kibosh on plans to sell two of its Japanese units, according to reports.

After receiving collateral payments from banks this month and having trouble finding buyers of the assets, the flailing insurer pulled back plans to sell AIG Star Life Insurance and AIG Edison Life Insurance.

When Robert Benmosche took the reigns at AIG he made clear that he would not be so quick to divest assets in the attempt to repay its $85 billion loan from the government.

Although many units have indeed been taken off the chopping block, the company nevertheless managed to sell off its Taiwan unit for $2.15 billion.

-- Reported by Jeanine Poggi in New York

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