Second sale in a week to repay US government bailout.

AIG was closing in on a deal on Sunday to sell its foreign life insurance unit to MetLife for about $15bn in cash and stock, in a transaction that would ultimately leave AIG with more than 20% of MetLife, Reuters reports.

The deal would be the second major business sale by AIG in a week and will allow the insurer to repay billions it owes to the US government.

AIG agreed to sell its Asian life insurance unit, American International Assurance (AIA), to Britain's Prudential last Monday for $35.5bn, the largest insurance deal ever.

AIG boss Robert Benmosche used to work for Met Life and was prevented from taking part in the negotiations, Reuters said.

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