NEW YORK ( TheStreet) -- AIG (AIG - Get Report) reached an agreement to sell its Japan-based life insurance units, AIG Star Life Insurance and AIG Edison Life Insurance, to Prudential Financial (PRU - Get Report), for $4.8 billion.
The deal consists of $4.2 billion in cash and the assumption of $600,000 in debt.
AIG, in a statement Thursday, said the sale of the Japanese units "represents another step in AIG's program to repay U.S. taxpayers and a key milestone in achieving a complete exit of government support over time."
AIG's has received assistance from the U.S. government totaling $132.1 billion as of June 30, according to the Associated Press.AIG said the transaction is expected to close in the first quarter of 2011. AIG expects to take a noncash goodwill impairment charge of about $1.2 billion before taxes in the third quarter from the sale. AIG said it will retain its general insurance business in Japan. Prudential, in a separate press release, said the acquired operations would increase its presence in Japan. -- Written by Joseph Woelfel
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