AIG renews talks with MetLife over Alico

Insurance giant American International Group is said to be in talks over a deal for all or part of its foreign unit, American Life Insurance Co. (Alico), with rival insurer MetLife.┬á  The two firms discussed a possible deal in March, but failed to reach any agreement. It is reported that discussions have been renewed due to improvements in market conditions.┬á Alico, which operates in fifty countries around the world and currently generates over half its revenue in Japan, could offer rival insurers an opportunity to quickly expand their operations overseas.  According to reports, MetLife was originally prepared to offer $11 billion for the life insurance arm but could now offer up to $15 billion.  Selling Alico would help New-York based AIG raise funds for repayment of its $83 billion loan from the Federal Government, which was made last September to save the firm from potential bankruptcy. The Government now has an 80 percent stake in the group.  According to the UK's┬áFinancial Times, in March AIG was also considering bids for all or part of Alico from France's Axa SA, UK-based Prudential and the state investment fund China Investment Corporation, but halted talks after receiving its latest installment of government funds. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *