AIG Takes Big Bets On Japan And China As It Buys GE Edison

American International Group is buying General Electric's lossmaking GE Edison Life Insurance operation in Japan for $2.15 billion. AIG already owns ALICO Japan and AIG Star Life Insurance in the consolidating Japanese insurance industry, and the deal makes the giant

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American International Group is buying General Electric’s lossmaking GE Edison Life Insurance operation in Japan for $2.15 billion. AIG already owns ALICO Japan and AIG Star Life Insurance in the consolidating Japanese insurance industry, and the deal makes the giant American insurer the sixth largest player in the Japanese life insurance industry. Seven Japanese life insurers have failed since 1997, as investment income has failed to match promises made to policyholders. AIG is also expecting a 40 per cent increase in premium income in China, where it earned $250 million in premium income last year.

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