AIG Soars in Pre-Market Trading (AIG)

American International Group (NYSE: AIG) is up almost 14% in pre-market trading on news it will be selling its Asian life insurance business. Prudential PLC of Britain will be acquiring the insurance giant’s Asian business for an estimated $35.5 billion.

After the Federal Reserve’s $180 billion investment in AIG as part of the massive bailout, they are set to receive $16 billion back on their preferred shares with this sale. This will be the largest repayment to the government from its bailout spending.

Prudential said with this buy out, the combined group would be the leading life insurer in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines and the leading foreign life insurance business in China and India.