AIG sells Asian arm to Britain’s Prudential insurers

By DPA,

London: Britain’s insurance giant Prudential (Pru) has reached agreement on a $35.5-billion deal to buy the Asian arm of embattled US insurer AIG, it was announced Monday.

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It said the deal would transform Pru into the largest insurer in Asia. In New York, AIG confirmed the sale of its Asian arm, AIA, to Prudential.

Reports said the takeover by Prudential of AIA is one of the biggest foreign

purchases by a British firm.

Analysts said it was believed that AIG – which is now controlled by the US government after a massive bail-out – could take a stake in Pru as part payment for AIA.