UK insurer Prudential confirms “advanced talks” on buying AIG’s Asian operations

Prudential close to buying AIG’s Asia unit

LONDON — British insurer Prudential PLC said Monday it was in advanced talks to buy the Asian operations of U.S. insurer American International Group Inc.

Trading in company shares was suspended at 08:00 GMT (03:00 EST) at Prudential’s request, pending an announcement.

Prudential said the possible acquisition of AIA Group Ltd. “represents a unique and strategically compelling opportunity for Prudential and AIA to create the leading insurer in South East Asia.”

News reports say the deal could be worth around $30 billion or more.

Bonnie Wu, Hong Kong-based spokesperson for AIA, had no immediate comment.

AIG was bailed out in September 2008 by the U.S. government as the financial crisis worsened. The insurer has received aid packages with a total value of $182.5 billion from the government. In return for that financial support, the government received an 80 percent stake in AIG.

AIG has said it planned to sell AIA or spin it off into a separate company through an initial public offering, part of an effort to pay off its debt to the U.S. government.

AIG said Friday it lost $8.87 billion in the fourth quarter as its general insurance business remained weak.