Just over a year ago, AIG said it would sell three of its Japanese life insurance businesses in an effort to help pay down an $85 billion government loan. However, reports surface that the company has decided not to sell two of its Japan units, AIG Star Life Insurance Co. and AIG Edison Life Insurance Co.
The Wall Street Journal (WSJ) reports that the sale of Star and had been dogged by delays since the announcement of sale plans. Bankers say potential buyers have had difficulties raising funds, while the uncertainty has contributed to a drop in policy sales. Star's sales fell 10% in the fiscal year ended March, and Edison's dropped nearly 14%.
"I have come to believe that we can obtain the greatest value for AIG Star and AIG Edison by continuing to operate and grow these companies as part of AIG," CEO Robert Benmosche told WSJ.
Reportedly, AIG is still considering selling or spinning off a third subsidiary, Alico Japan, which, in July, identified credit card data "leakage" in Japan. The Japan Times Online reports the Alico Japan case is one of the largest credit card data leaks—18,184 policyholders—in the country involving fraudulent use of stolen data. Suspected unauthorized credit card uses were mostly linked to online purchases of consumer electronic products.
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