NEW YORK ( TheStreet) -- AIG ( AIG) reached an agreement to sell its Japan-based life insurance units, AIG Star Life Insurance and AIG Edison Life Insurance, to Prudential Financial ( PRU), 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

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:

If you liked this article you might like

Downgraded AIG Isn't Finished Falling

Downgraded AIG Isn't Finished Falling

Former AIG CEO Greenberg Can Pursue Defamation Suit Against Spitzer

How to Make Easy Money on Apple's iPhone X Worldwide Reveal: Market Recon

Hurricanes Irma and Harvey Might Cost $100 Billion, Dealing Big Blow to Insurers