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US insurance giant AIG has accepted a deal to sell its Asian arm, AIA, to British insurer Prudential for around 35 billion dollars, a source close to the deal said Sunday.
AIG, which was just recently considering a flotation of its Asian activities, finally agreed to let Prudential buy its Asian arm, said the source.
The deal would make Prudential the top non-Chinese global insurer by capitalisation, notably ahead of Allianz and Axa.
It is understood the sale will be unveiled in the coming days, perhaps as early as Monday.
Tidjane Thiam took up the job of Prudential chief executive in October and had never hidden his desire to expand the business in Asia.
He went to New York at the end of last week to persuade AIG's board of directors to sell his company AIA. AIG had been planning an initial public offering for its Asian arm in Hong Kong in April.
Prudential's shareholders, for their part, welcomed the company's projects, said the source. The British press at the weekend reported that the group Resolution was trying to strike a deal with Prudential to buy its British businesses.
AIG was hard hit by the financial crisis and received more than 170 billion dollars in a taxpayer bailout. In 2008, the firm tried to sell up to 49 percent of AIA through an auction process but had to drop the idea after failing to receive suitable offers.
