AIG Gets Bids For Life Insurance Unit: Report

MetLife and Axa have made bids for American International Group's life-insurance unit, a report says.
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American International Group

(AIG) - Get Report

received bids from

MetLife

(MET) - Get Report

and

Axa SA

for a life-insurance unit spanning more than 50 countries, a sale that could mark the biggest step yet in the firm's dismantling,

Bloomberg

reports, citing people familiar with the situation.

MetLife made a preliminary offer of $11.2 billion for American Life Insurance, a price that may drop to about $8 billion because of deterioration in the unit's financial condition, according to

Bloomberg

. A bid from Axa excludes operations in Japan, American Life Insurance's biggest market.

AIG may shelve the sale of the life-insurance unit if it doesn't find a buyer at the right price,

Bloomberg

reports, citing one of the people close to the matter.

Spokespeople at MetLife, Axa and AIG declined to comment for

Bloomberg

.

The potential sale of the life-insurance unit comes as the

insurer

said Monday it is discussing "alternative options" with regulators to keep the firm afloat as it navigates through the financial crisis.

The government holds nearly an 80% stake in AIG, after loaning it $150 billion in taxpayer dollars to prevent the firm from collapsing last fall.

AIG has been selling or auctioning off assets and business units to repay some of the bailout loan.

This article was written by a staff member of TheStreet.com.