ALICO ACHIEVES SOLID OPERATING RESULTS IN 2008
WILMINGTON, DE, March 27, 2009

American Life Insurance Company (ALICO) announced today that it achieved solid operating results despite the difficult economic environment.

As of December 31, 2008, financial results, reported on a statutory basis, included assets under management of US $84 billion, total statutory revenues of $32.3 billion, after tax operating income of $1.3 Billion (before realized capital gains/losses), and net income of $176.9 million. After tax operating income represented an increase of 30% from 2007.

ALICO holds approximately 75% of its investment assets in Fixed Income Securities and Cash. Overall investments are high quality with an average asset rating of AA. ALICO has low exposure to alternative asset classes.

The ratings agencies of Standard and Poor's ("S&P"), Moody's Investor Service, Fitch Ratings, and A.M. Best confirmed, on March 2, 2009, respectively their Strong, Good, Very Strong, and Excellent financial strength ratings for ALICO.


About ALICO

American Life Insurance Company (ALICO), incorporated in Delaware, USA, was founded in 1921. ALICO is one of the largest and most diversified international insurance companies in the world. ALICO branches and subsidiaries market a wide range of life and health insurance products around the world including Japan, throughout much of Europe, the Middle East, South Asia, Latin American and the Caribbean. ALICO products include traditional life insurance, variable universal life insurance, supplemental medical and personal accident products, health and hospitalization insurance, group life, pensions and annuities.

The Board of Directors of American International Group, Inc. (NYSE:AIG) issued the following statement on September 16th, 2008 in response to the announcement by the Federal Reserve Board that the Federal Reserve Bank of New York is providing a two-year, $85 Billion secured revolving credit facility to AIG that will ensure the company can meet its liquidity needs "The AIG Board has approved this transaction based on its determination that this is the best alternative for all of AIG's constituencies, including policyholders, customers, creditors, counterparties, employees and shareholders. AIG is a solid company with over $1 Trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues. We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis. We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG's businesses to continue as substantial participants in their respective markets. In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG".

Policyholders of AIG companies around the world can rest assured that AIG's commitments will continue to be honored.

AIG's life insurance, general insurance and retirement services businesses continue to operate normally and remain adequately capitalized and fully capable of meeting their obligations to policyholders.

The insurance policies written by AIG companies are direct obligations of its regulated subsidiary insurance companies around the world. These companies are well capitalized and meet or exceed local regulatory capital requirements. The companies continue to operate in the normal course to meet obligations to policyholders.

The AIG companies are fully committed to maintaining required capital levels in all of its subsidiaries and to meeting the needs of their customers around the world.



ABOUT AMERICAN LIFE INSURANCE COMPANY

American Life Insurance Company ("ALICO") is a stand-alone insurance company operating in over 55 countries worldwide. Through its branches and subsidiaries, ALICO markets a variety of life and health insurance products with a current S& P financial strength rating of A+. ALICO's financial position remains stable and strong:

. As of June 30, 2008 premiums and deposits were in excess of $18 billion and assets exceeded $100 billion.

. Insurance policies issued by ALICO or its subsidiaries are direct obligations of our regulated insurance companies, not AIG directly.

. ALICO and its subsidiaries are regulated by the local insurance supervisory authorities in each country. These companies satisfy or exceed local regulatory capital requirements. We are working closely with our regulators worldwide to demonstrate financial stability and commitment to our policyholders.

As the global financial markets experience unprecedented turmoil, ALICO and its subsidiaries reaffirm their financial strength and commitment to our policyholders, distribution partners, and regulators.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

American Life Insurance Company (ALICO), a subsidiary of American International Group, Inc. (AIG), is one of the largest international life insurance companies in the world. ALICO's branches and subsidiaries market a wide range of life and health insurance products, including traditional, variable universal and credit life insurance, as well as supplemental medical and personal accident products, health and hospitalization insurance, group life, pensions and annuities through a variety of channels. The company operates in more than 55 countries and regions around the world including Japan, Europe, the Middle East, South Asia, Latin America and the Caribbean.

ALICO MEASA Assures Policyholders That It Has More Than Sufficient Capital and Reserves to Meet All Obligations

AIG is a company with over $1 trillion in assets and substantial equity, but the company has experienced short-term cash flow problems. The United States Government, through the Federal Reserve Bank, has provided AIG, Inc. (the holding company) with a US$85 billion secured revolving credit facility that will allow AIG to meet its near-term liquidity needs.

While AIG is the parent holding company of ALICO, ALICO is a separate, stand-alone regulated insurance company. ALICO has strong, well-positioned businesses in diverse markets around the world and a deep asset base.

As of June 30, 2008, ALICO had US$100 billion in assets. And ALICO's liquidity remains strong. Currently, ALICO holds an S&P financial strength rating of A+.

Insurance policies written by ALICO branches and subsidiaries are direct obligations of our locally regulated insurance operations, not AIG directly. ALICO branches and subsidiaries are subject to stringent local regulatory and capital requirements. These companies continue to operate to meet the obligations to our policyholders. ALICO itself is subject to insurance regulation in Delaware, U.S.A.


To respond to the needs of our policyholders, we have established a dedicated Hotline + 9716 5194999 to address any queries or concerns that you may have on your policies.

To our customers, agents, brokers, advisors and other partners:

Thank you for sticking with us. All 116,000 AIG employees appreciate your confidence in us and are working tirelessly, with a renewed commitment to serving your needs. Be assured that our insurance companies remain strong and well-capitalized. The financial issues of the AIG parent company do not affect our insurance companies' ability to pay claims and underwrite new policies. Regulations ensure that the assets of our insurance companies are there to back up each policy. You are protected. Your policies are safe. I'll be communicating with you as we mold AIG into a strong, nimble and vital organization focused on exceeding your expectations and securing your future.

Edward M. Liddy
Chairman & CEO
American International Group, Inc.

ALICO wishes to reassure all its policyholders and partners in Middle East, Africa and South Asia Region of its solid and well capitalized position in the region

The management of ALICO in Middle East, Africa and South Asia region wishes to reassure all its policyholders and partners in the region of its financially strong, solid and well-capitalized position.

While ALICO's current parent company American International Group, Inc. (AIG) has been affected by the volatility in the financial markets, it is important to understand that ALICO's policyholders are protected and that the Company continues to honor all its customers' commitments. ALICO has well-positioned businesses in diverse markets around the world, and its branches and subsidiaries continue to operate in the normal course to meet obligations to policyholders and pay valid policyholders claims.

We reassure all policyholders in MEASA that ALICO's branches and subsidiaries are regulated by the local insurance supervisory authorities in each country where it operates and ALICO satisfies or exceeds local regulatory capital requirements. In addition, ALICO is separately regulated in the United States, and remains financially strong and well-capitalized.

We remain focused on the daily execution of our business and continue to provide the highest levels of services to our valued customers.

ALICO's ability to pay policyholders claims is solid. ALICO remains financially strong, well-capitalized and complies with the local regulatory capital requirements.

American Life Insurance Company (ALICO), a subsidiary of American International Group, Inc. (AIG), is one of the largest international life insurance companies in the world. ALICO's branches and subsidiaries market a wide range of life and health insurance products, including traditional, variable universal and credit life insurance, as well as supplemental medical and personal accident products, health and hospitalization insurance, group life, pensions and annuities through a variety of channels. The company operates in more than 55 countries and regions around the world including Japan, Europe, the Middle East, South Asia, Latin America and the Caribbean.

AMERICAN LIFE INSURANCE COMPANY TO BE PLACED IN SPECIAL PURPOSE VEHICLE

AIG POSITIONING ALICO AS AN INDEPENDENT OPERATION

MOVE PART OF AIG RESTRUCTURING PLAN WITH SUPPORT OF U.S. TREASURY AND THE FEDERAL RESERVE

NEW YORK, March 2, 2009 - American International Group, Inc. (AIG) and American Life Insurance Company (ALICO) today announced a broad set of actions, taken in cooperation with the U.S. Department of the Treasury (U.S. Treasury) and the Federal Reserve, to improve AIG's capital structure, protect and enhance the value of its key businesses, and position these franchises for the future as more independently run, transparent companies.

AIG is working closely with the management of each of its major operating businesses to establish the appropriate governance and capital structures for those businesses. Certain businesses that are already positioned for sale will continue on this track; some will be held for later divestiture; and some businesses, such as ALICO and American International Assurance Company, Ltd (AIA), will continue to review their divestiture options, which ultimately may include a public offering of shares, depending on market conditions.

AIG intends to contribute the equity of ALICO and AIA into special purpose vehicles (SPVs) in exchange for preferred and common interests in the SPVs. This will enable the Federal Reserve Bank of New York (FRBNY) (or a trust for the benefit of the FRBNY) to receive preferred interests in repayment of a portion of the FRBNY facility. The amount of the preferred interests will be a percentage of the fair market value of ALICO and AIA based on valuations acceptable to the FRBNY. AIG will continue to hold the common interests in the SPVs. These transactions will reduce AIG's debt and interest carrying costs, while allowing AIG to continue to benefit from its ongoing common interests in the SPVs. Until subsequent divestment, ALICO will remain a wholly owned subsidiary of AIG, consolidated in AIG's reported financial statements.

"Given the importance of ALICO and AIA to repaying our obligation to the U.S. government, we think this structure is the optimal solution to maintain the value of these businesses and best position them to enhance their franchises," said Edward M. Liddy, Chairman and Chief Executive Officer, AIG.

"The ultimate success of our restructuring plan centers on ensuring that the unique businesses that make up AIG can thrive on their own. While this process may take up to several years to complete, we will ultimately create stronger, sounder businesses worthy of investor, customer, and regulatory confidence. We greatly appreciate the continued cooperation and support of our customers, business partners, the U.S. government and regulators around the world," Mr. Liddy said.

"We are delighted by the changes announced by AIG today," said Rodney O. Martin Jr., ALICO Chairman and Chief Executive Officer. "This sends a clear message to our stakeholders that ALICO continues to be a trustworthy, reliable and qualified partner. It will position us well in continuing to focus on our core life insurance and retirement services business. We can continue to execute ALICO's successful business model to enhance the value of our franchise and to provide maximum value to the U.S. taxpayers. We continue to have very strong insurance operations and our ability to pay claims will be unaffected by this change."

AIG also confirmed today that it had received proposals to acquire all or part of the share capital of ALICO. These proposals are preliminary and are being reviewed along with AIG's consideration of a full or partial IPO of ALICO. "We will continue to consider all strategic alternatives for ALICO and evaluate expressions of interest from qualified parties with access to capital," Mr. Martin said.

It should be noted that information contained in this press release or remarks made on the conference call may include projections and statements which may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These projections and statements are not historical facts but instead represent only AIG's belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG's control. These projections and statements may address, among other things, the outcome of proposed transactions with the Federal Reserve Bank of New York and the United States Department of the Treasury, the number, size, terms, cost and timing of dispositions and their potential effect on AIG's businesses, financial condition, results of operations, cash flows and liquidity (and AIG at any time and from time to time may change its plans with respect to the sale of one or more businesses), AIG's exposures to subprime mortgages, onocline insurers and the residential and commercial real estate markets and AIG's strategy for growth, product development, market position, financial results and reserves. It is possible that AIG's actual results and financial condition will differ, possibly materially, from the anticipated results and financial condition indicated in these projections and statements. Factors that could cause AIG's actual results to differ, possibly materially, from those in the specific projections and statements include a failure to complete the proposed transactions with the NY Fed and the United States Department of the Treasury, developments in global credit markets and such other factors as discussed in Item 1A. Risk Factors and throughout Management's Discussion and Analysis of Financial Condition and Results of Operations in AIG's Annual Report on Form 10-K for the year ended December 31, 2008. AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projection or other statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.



American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

AIG MOVING FORWARD WITH ACCELERATED SEPARATION OF ALICO

ALICO TO BE PLACED IN SPECIAL PURPOSE VEHICLE AND POSITIONED AS INDEPENDENT, GLOBAL FRANCHISE

NEW YORK, June 25, 2009 - American International Group, Inc. (AIG) today announced that it has entered into an agreement with the Federal Reserve Bank of New York (FRBNY) positioning the American Life Insurance Company (ALICO), a leading international life insurance franchise, for an initial public offering, depending on market conditions.

Under the agreement, AIG will contribute the equity of ALICO to a special purpose vehicle (SPV) in exchange for preferred and common interests in the SPV. The FRBNY will receive preferred interests in the ALICO SPV of $9 billion, which will reduce the debt owed by AIG to the FRBNY under the FRBNY credit facility by an equivalent amount. The face value of the preferred interests represents a percentage of the estimated fair market value of ALICO. AIG will hold the common interests in the ALICO SPV and will benefit from the fair market value of ALICO in excess of the preferred interests as the SPV monetizes its stake in the company in the future.

AIG expects this transaction to close in the second half of 2009 subject to customary closing conditions, including regulatory approvals.

"This action accelerates the move of ALICO toward greater independence and helps maintain the value of the franchise," said Rodney O. Martin, Jr., ALICO Chairman and Chief Executive Officer. "Securing the value of this well-capitalized global insurer is in the best interests of policyholders, distribution partners, and the American taxpayer. We are very excited to begin this new chapter in the life of one of the world's leading international life insurance companies."

According to the FRBNY: "The agreement further the goals of enabling AIG to fully repay the assistance that it has received from U.S. taxpayers and advancing the company's global restructuring process. The exchange of senior secured debt for preferred equity interests reduces AIG's financial leverage and facilitates the independence of key subsidiaries."



American Life Insurance Company (ALICO) is one of the largest and most diversified international life insurance companies in the world. Founded in 1921, the company operates in more than fifty countries and regions including Japan, Europe, the Middle East, South Asia, Latin America and the Caribbean. ALICO's branches and subsidiaries market a wide range of life and health insurance products, including traditional, variable universal and credit life insurance, as well as supplemental medical and personal accident products, health and hospitalization insurance, group life, pensions and annuities through a variety of distribution channels.



American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo

ALICO ANNOUNCES REBRANDING INITIATIVE

FRESH AND BOLD NEW VISUAL IDENTITY FOR ALICO

REPRESENTS ANOTHER STEP IN POSITIONING ALICO AS AN INDEPENDENT COMPANY

WILMINGTON, DE, July 1, 2009 - American Life Insurance Company (Alico) today announced a rebranding initiative as the company enters a new and exciting chapter in its history. The rebranding initiative will see a bold, new brand visual identity progressively rolled out across its fifty-four markets worldwide.

The new brand visual identity is a symbolic representation of Alico's future separation from AIG and evocative of its heritage as a global insurer that has enjoyed tremendous success throughout its history, with a significant presence in every region across the globe.

Alico's operations in Western Europe, the UK, and some areas in Latin America will be re-named, subject relevant regulatory approvals, from their legacy brands to Alico.

"Alico is a strong brand with a proud heritage. Since its inception in 1921, Alico has built a reputation for delivering market-leading products and services to our customers," said Rodney O. Martin, Jr., Alico Chairman and Chief Executive officer. "Today's announcement builds on that heritage, enhancing Alico's public profile and re- establishing the customer loyalty and brand equity the company established over its eighty-eight year history."

"The rebranding, coupled with the future independence of Alico will ensure that we retain and fully capitalize our cherished position as a leading global insurer, and provide a strong and stable platform for continued growth."



Alico is a leading international life insurer with a unique heritage of serving customers across the globe for over 85 years. The company provides consumers and businesses with products and services for life insurance, accident and health insurance, retirement planning, and wealth management solutions. Through an extensive network of over 40,000 agents, brokers and financial institutions and 11,000 employees across 54 countries, Alico services 19 million customers worldwide.

Alico has branch offices, subsidiaries and affiliates in emerging, developing and developed markets in Europe, Asia, the Middle East, Africa and Latin America. Alico is domiciled in Wilmington, Delaware and has regional headquarters in Tokyo, London, Paris, Athens, Dubai, and Santiago, Chile.

AIG TO ACCELERATE SEPARATION OF ALICO

ALICO TO SEEK PUBLIC LISTING IN NY

NEW YORK, July 15, 2009, American International Group, Inc. (AIG) today announced it will accelerate steps to position American Life Insurance Company (ALICO) as an independent entity and seek an initial public offering and public listing in New York, depending on market conditions and subject to regulatory approval. This planned public offering of ALICO is a significant step in the process that was announced by AIG on March 2 and will result in a board of directors and management team for ALICO separate from AIG.

"We continue to consider all strategic options through a robust, structured and disciplined process. At this stage, we expect that a public offering for ALICO will be beneficial to all stakeholders, including U.S. taxpayers, policyholders, employees and distribution partners," said Edward Liddy, Chairman and Chief Executive Officer of AIG.

Rodney O. Martin, Jr., Chairman and Chief Executive Officer of ALICO said, "Today's announcement represents a roadmap for our independence. "Our ability to weather current economic conditions across all of our markets demonstrates the strength of our operations, diversification of our platform, confidence of our customers and support of our distribution partners." ALICO is a leading global insurer operating in 54 countries with 19 million customers, over 40,000 agents and distribution partners and assets under management of more than $89 billion.



Alico is a leading international life insurer with a unique heritage of serving customers across the globe for over 85 years. The company provides consumers and businesses with products and services for life insurance, accident and health insurance, retirement planning, and wealth management solutions. Through an extensive network of over 40,000 agents, brokers and financial institutions and 11,000 employees across 54 countries, Alico services 19 million customers worldwide.

Alico has branch offices, subsidiaries and affiliates in emerging, developing and developed markets in Europe, Asia, the Middle East, Africa and Latin America. Alico is domiciled in Wilmington, Delaware and has regional headquarters in Tokyo, London, Paris, Athens, Dubai, and Santiago, Chile.



American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

ALICO #1 IN INDIVIDUAL LIFE PREMIUMS

OCTOBER 2ND, 2009 - American Life Insurance Company (Alico) was ranked number one on National Underwriter(NU) magazine's list of industry leaders in individual life premiums in 2008. It topped the list with $20.3 billion in individual life premiums despite what NU referred to as a "trying" year for industry leaders across the board. It ranked number three in overall premium income with more than $29 billion. Alico also ranked 13 in terms of admitted assets with $86 billion -- a good indication of the scale and diversity of its operations. "We are very pleased by these results, particularly in the current economic environment. Alico continues to outpace competitors' growth in our key markets, which is a tribute to the dedicated work of our employees and distributors across the globe," said Rod Martin, Chairman and CEO, Alico.

NU bases its annual rankings on the annual and quarterly financial statements of National Association of Insurance Commissioner's (NAIC) filing companies.

NU and its sister company and research firm Highline Data are premier providers of insurance industry financial performance data, market data, and education services.



Source : National Underwriter Magazine - October 2nd, 2009

AIG TO SELL ALICO TO METLIFE FOR APPROXIMATELY $15.5 BILLION

Transaction unlocks significant value for AIG to repay the U.S. Government,including $6.8 billion in cash to Federal Reserve Bank of New York upon closing

NEW YORK, March 8, 2010 - American International Group, Inc. (NYSE: AIG) announced today a definitive agreement for the sale of American Life Insurance Company (ALICO), one of the world's largest and most diversified international life insurance companies, to MetLife, Inc. (MetLife) for approximately $15.5 billion, including $6.8 billion in cash and the remainder in equity securities of MetLife, subject to closing adjustments. The cash portion of the proceeds from this sale will be used to reduce the liquidation preference of the Federal Reserve Bank of New York (FRBNY) in the special purpose vehicle (SPV) formed by AIG and the FRBNY to hold the interests in ALICO.

"This sale is an important step toward repaying the government. ALICO is a unique international life insurer, and we view this as a terrific combination that will further enhance the company's potential over the long term. With this sale of ALICO, along with the sale of AIA to Prudential plc announced last week, we are on track to generate approximately $50.7 billion from these two transactions alone, consisting of approximately $31.5 billion in cash to repay the FRBNY, plus another approximately $19.2 billion in securities that we will sell over time to repay the government. In addition, both sales give AIG greater flexibility to move forward with our restructuring and rebuilding efforts, and focus on enhancing the value of our key insurance businesses," said Harvey Golub, Chairman of the AIG Board of Directors.

On December 1, 2009, the FRBNY received preferred interests in the ALICO SPV with a liquidation preference of $9 billion. Accordingly, upon the closing of this sale of ALICO, the ALICO SPV will receive and pay to the FRBNY approximately $6.8 billion in cash, and the ALICO SPV will hold the remainder of the transaction consideration, consisting of 78,239,712 shares of common stock, 6,857,000 shares of newly issued participating preferred stock convertible into 68,570,000 shares of common stock upon approval of MetLife shareholders, and 40,000,000 equity units of MetLife with a liquidation preference of $3 billion.

The ALICO SPV intends to monetize the MetLife securities over time, subject to market conditions, following the lapse of agreed-upon minimum holding periods. The ALICO SPV will then apply the resulting cash proceeds first to pay the remainder of the liquidation preference of the preferred interests held by the FRBNY in the ALICO SPV and afterwards to continue paying down AIG's FRBNY credit facility.

Rodney O. Martin, Jr., Chairman and Chief Executive Officer of ALICO, stated, "Our entire organization is excited about this transaction. MetLife is a well-respected, financially strong institution in which our customers, distributors, and employees can have confidence. We look forward to a smooth transition and a bright future as part of MetLife's International Business team, combining our global footprints and successful business models to create an unrivalled global life insurance franchise."

Founded in 1921, ALICO is a leading multinational life insurer that provides consumers and businesses with products and services for life insurance, accident and health insurance, retirement planning, and wealth management solutions. The transaction includes all of ALICO, including the company's approximately 60,000 points of distribution, including agents, brokers and financial institutions; 12,500 employees across more than 50 countries; and 20 million customers worldwide. The transaction also includes ALICO's Global Benefits Network serving U.S. and foreign multinationals. In 2008, ALICO had total statutory revenue of $32.3 billion and $1.3 billion in after-tax operating income. As of December 31, 2008, ALICO had $89 billion in assets under management.

AIG is assessing the financial statement effects of the transaction, including the timing and recognition of gain or loss on the sale. In addition, as previously disclosed in its 2009 Form 10-K, AIG is assessing the recoverability of goodwill.

The transaction has been approved by the boards of directors of both MetLife and AIG, and is expected to close by the end of the year. The transaction is subject to certain domestic and international regulatory approvals and customary closing conditions.



American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

ALICO is a leading international life insurer with a unique heritage of serving customers across the globe for over 85 years. The company provides consumers and businesses with products and services for life insurance, accident and health insurance, retirement planning, and wealth management solutions. Through an extensive network of over 60,000 agents, brokers, financial institutions, and others, and 12,500 employees across more than 50 countries, ALICO services 20 million customers worldwide.

ALICO has branch offices, subsidiaries and affiliates in emerging, developing and developed markets in Europe, Asia, the Middle East, Africa and Latin America. ALICO is domiciled in Wilmington, Delaware, and has regional headquarters in Tokyo, London, Paris, Athens, Dubai, and Santiago, Chile.

METLIFE TO ACQUIRE AMERICAN LIFE INSURANCE COMPANY FROM AMERICAN INTERNATIONAL GROUP FOR APPROXIMATELY $15.5 BILLION

Combination of highly complementary businesses will create a global life insurance and employee benefits powerhouse with compelling growth opportunities

NEW YORK, March 8, 2010 - MetLife, Inc. (NYSE: MET) announced today a definitive agreement to acquire one of American International Group, Inc.'s (AIG) international subsidiaries, American Life Insurance Company (ALICO), for approximately $15.5 billion. The consideration will consist of $6.8 billion in cash and approximately $8.7 billion in MetLife equity securities, subject to closing adjustments.

Specifically, the equity security portion of the purchase price will consist of 78.2 million shares of MetLife common stock valued at $3.0 billion, 6.9 million shares of contingent convertible preferred stock valued at $2.7 billion and 40 million equity units having an aggregate stated value of $3.0 billion. The values of the common stock and the preferred stock are based upon the closing price of MetLife's common stock on the New York Stock Exchange on Friday, March 5, 2010. Finally, MetLife expects the cash portion of the purchase price to be financed through a combination of the issuances of senior debt and MetLife common stock as well as cash on hand.

The acquisition of ALICO, one of the world's largest and most diversified international life insurance companies, accelerates MetLife's global growth strategy. Upon completion of the transaction, MetLife, which is already the largest life insurer in the United States and Mexico, will become a leading competitor in Japan, the world's second-largest life insurance market. The transaction materially advances MetLife's position in Europe. It also moves MetLife into a top five market position in many high growth emerging markets in Central and Eastern Europe, the Middle East and Latin America.

"With this acquisition, MetLife is delivering on its strategy to accelerate international expansion as a powerful growth engine for the company," said C. Robert Henrikson, chairman, president and chief executive officer of MetLife, Inc. "Today's transaction will bring together two profitable, complementary, well-established businesses with superb track records and strong long-term growth potential. We expect it will increase MetLife's return on equity and be accretive to operating earnings."

MetLife expects the transaction to increase its 2011 operating earnings per share by approximately $0.45 to $0.55 per share, and enable the company to increase its estimated 2011 year-end operating return on equity by 140 to 160 basis points. Operating earnings per share does not include transition and other one-time expenses estimated at $0.12 per share.

MetLife and AIG will enter into an Investor Rights Agreement which will, among other things, require AIG to hold specified amounts of MetLife securities for certain designated periods of time. Certain lock-ups will begin to expire nine months after closing. The ALICO special purpose vehicle intends to monetize the MetLife securities over time, subject to market conditions, following the lapse of agreed-upon minimum holding periods.

Henrikson added, "This transaction creates a global leader in life insurance and employee benefits by adding significant scale and geographic reach to MetLife's international footprint and further diversifying the company's product mix, distribution channels and geographic exposures. We have tremendous respect for the franchise that the ALICO team has built and, to ensure a successful integration, I have asked Bill Toppeta, president of MetLife's International business, to lead the integration of ALICO into MetLife."

"MetLife has a proven track record in integrating complex multi-national acquisitions and we look forward to welcoming our new ALICO colleagues," said William J. Toppeta, president, MetLife's International business. "Moreover, we are committed to ensuring a smooth transition for ALICO's customers and distributors, who will benefit by joining a financially strong, industry-leading organization with more than 140 years of experience in providing customers with the products and services they need to protect their financial future."

Founded in 1921, ALICO is a leading international life insurer that provides consumers and businesses with products and services for life insurance, accident and health insurance, retirement and wealth management solutions. The transaction includes all of ALICO, including the company's approximately 60,000 points of distribution, including agents, brokers and financial institutions; 12,500 employees across more than 50 countries; and 20 million customers worldwide. The transaction also includes ALICO's Global Benefits Network serving U.S. and foreign multinationals.

The transaction has been approved by the boards of directors of both MetLife and AIG, and is expected to close by the end of 2010. The transaction is subject to certain regulatory approvals and other customary closing conditions.

Credit Suisse served as principal financial advisor to MetLife. Barclays Capital served as special financial advisor to MetLife. BofA Merrill Lynch, Deutsche Bank and HSBC also served as financial advisors to MetLife. Dewey & LeBoeuf LLP served as principal legal advisor to MetLife.

MetLife Conference Call
MetLife will hold a conference call and Webcast today at 8:00 a.m. (ET) to discuss the company’s acquisition of ALICO. The conference call will be available live via telephone and the Internet. To listen over the telephone, dial (612) 326-0027 (domestic and international callers). To listen to the conference call over the Internet and/or to access the presentation materials for this event, visit www.metlife.com (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software.

Presentation materials referenced during the conference call will be included in a Current Report on Form 8-K that will be furnished to the U.S. Securities and Exchange Commission.

The conference call will be available for replay via telephone and the Internet beginning at 10:00 a.m. (ET) on Monday, March 8, 2010, until Monday, March 15, 2010 at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and international callers). The access code for the replay is 146290. To access the replay of the conference call over the Internet, visit the above-mentioned Web site.

Non-GAAP and Other Financial Disclosures

All references above in this press release to net income (loss), net income (loss) per share, operating earnings, operating earnings per share and operating return on equity should be read as net income (loss) available to MetLife, Inc.’s common shareholders, net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share, operating earnings available to MetLife, Inc.’s common shareholders, operating earnings available to MetLife, Inc.’s common shareholders per diluted common share and operating return on common equity, respectively.

The historical and forward-looking financial information presented in this press release includes performance measures which are based on methodologies other than generally accepted accounting principles in the United States of America (“GAAP”). MetLife, Inc. analyzes its performance using financial measures, such as operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity, that are not based on GAAP. Operating earnings, defined as operating revenues less operating expenses, net of income tax, is the measure of segment profit or loss MetLife uses to evaluate segment performance and allocate resources and, consistent with GAAP accounting guidance for segment reporting, is MetLife’s measure of segment performance. Operating earnings is also a measure by which MetLife’s senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Operating earnings available to common shareholders, which is used to evaluate the performance of Banking, Corporate & Other, as well as MetLife, is defined as operating earnings less preferred stock dividends.

Operating revenues is defined as GAAP revenues (i) less net investment gains (losses), (ii) less amortization of unearned revenue related to net investment gains (losses), (iii) plus scheduled periodic settlement payments on derivative instruments that are hedges of investments but do not qualify for hedge accounting treatment, (iv) plus income from discontinued real estate operations, and (v) plus, for operating joint ventures reported under the equity method of accounting, the aforementioned adjustments and those identified in the definition of operating expenses, net of income tax, if applicable to these joint ventures.

Operating expenses is defined as GAAP expenses (i) less changes in experience-rated contractholder liabilities due to asset value fluctuations, (ii) less costs related to business combinations (since January 1, 2009) and noncontrolling interests, (iii) less amortization of DAC and VOBA and changes in the policyholder dividend obligation related to net investment gains (losses), and (iv) plus scheduled periodic settlement payments on derivative instruments that are hedges of policyholder account balances but do not qualify for hedge accounting treatment.

MetLife believes the presentation of operating earnings and operating earnings available to common shareholders as MetLife measures it for management purposes enhances the understanding of its performance by highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity should not be viewed as substitutes for GAAP net income (loss) from continuing operations, net of income tax, GAAP net income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders, GAAP net income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per diluted common share and return on common equity, respectively.

In this press release, MetLife provides guidance on its future earnings and earnings per diluted common share on an operating and non-GAAP basis. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is not accessible on a forwardlooking basis because MetLife believes it is not possible to provide other than a range of net investment gains and losses, which can fluctuate significantly within or without the range and from period to period and may have a significant impact on GAAP net income.

About MetLife
MetLife, Inc. is a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.

This press release may contain or incorporate by reference information that includes or is based upon forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining MetLife’s actual future results. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission (the “SEC”). These factors include: (i) difficult and adverse conditions in the global and domestic capital and credit markets; (ii) continued volatility and further deterioration of the capital and credit markets, which may affect MetLife’s ability to seek financing or access its credit facilities; (iii) uncertainty about the effectiveness of the U.S. government’s plan to stabilize the financial system by injecting capital into financial institutions, purchasing large amounts of illiquid, mortgage-backed and other securities from financial institutions, or otherwise; (iv) exposure to financial and capital market risk; (v) changes in general economic conditions, including the performance of financial markets and interest rates, which may affect MetLife’s ability to raise capital, generate fee income and marketrelated revenue and finance statutory reserve requirements and may require MetLife to pledge collateral or make payments related to declines in value of specified assets; (vi) potential liquidity and other risks resulting from MetLife’s participation in a securities lending program and other transactions; (vii) investment losses and defaults, and changes to investment valuations; (viii) impairments of goodwill and realized losses or market value impairments to illiquid assets; (ix) defaults on MetLife’s mortgage loans; (x) the impairment of other financial institutions; (xi) MetLife’s ability to identify any future acquisitions and consummate such acquisitions, including the acquisition of ALICO, on successful terms, and to successfully integrate acquired businesses with minimal disruption; (xii) economic, political, currency and other risks relating to MetLife’s international operations; (xiii) MetLife, Inc.’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (xiv) downgrades in MetLife, Inc.’s and its affiliates’ claims paying ability, financial strength or credit ratings; (xv) ineffectiveness of risk management policies and procedures, including with respect to guaranteed benefits (which may be affected by fair value adjustments arising from changes in MetLife’s own credit spread) on certain of MetLife’s variable annuity products; (xvi) availability and effectiveness of reinsurance or indemnification arrangements; (xvii) discrepancies between actual claims experience and assumptions used in setting prices for MetLife’s products and establishing the liabilities for MetLife’s obligations for future policy benefits and claims; (xviii) catastrophe losses; (xix) heightened competition, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors and for personnel; (xx) unanticipated changes in industry trends; (xxi) changes in accounting standards, practices and/or policies; (xxii) changes in assumptions related to deferred policy acquisition costs, value of business acquired or goodwill; (xxiii) increased expenses relating to pension and postretirement benefit plans; (xxiv) deterioration in the experience of the “closed block” established in connection with the reorganization of Metropolitan Life Insurance Company; (xxv) adverse results or other consequences from litigation, arbitration or regulatory investigations; (xxvi) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xxvii) regulatory, legislative or tax changes that may affect the cost of, or demand for, MetLife’s products or services; (xxviii) the effects of business disruption or economic contraction due to terrorism, other hostilities, or natural catastrophes; (xxix) the effectiveness of MetLife’s programs and practices in avoiding giving its associates incentives to take excessive risks; and (xxx) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the SEC; and (xxxi) any of the foregoing factors as they relate to ALICO and its operations.

Neither MetLife, Inc. nor ALICO undertakes any obligation to publicly correct or update any forward-looking statement if they later become aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the SEC.

METLIFE ENTER INTO AN AGREEMENT WITH AIG TO ACQUIRE ALICO

March 8, 2010 - Today it was announced that MetLife has entered into an agreement with AIG to acquire Alico. The deal was signed on March 8th, 2010 and will be completed by the end of the year.

Commenting on the announcement, Michel Khalaf, CEO of Alico Middle East, Africa & South Asia said “ This is an excellent development for Alico and for our customers, business partners, agents and employees. This transaction represents a vote of confidence in the Alico brand and its people, and reinforces the desirability of Alico as a franchise. Furthermore, it represents a clear path forward as part of a financially secure, stable and well regarded company, where the combined international footprint will have access to over 75% of the world’s population in 60 countries around the globe. We are excited to be part of the MetLife family as we continue to see significant growth prospects in the MEASA region. We are very much focused on continuing to meet the needs of our clients and the markets that we serve and on maintaining our leadership position in the region.”

ALICO RULES OUT ME LAYOFFS

Khaleej Times, Sunday March 21, 2010

Alico chief expects MetLife-Alico $15.5b deal to close by fourth quarter of 2010

DUBAI - American Life Insurance Company (Alico) on Saturday ruled out layoffs or other "rightsizing moves" in the Middle East following its $15.5 billion acquisition by MetLife, the largest US life insurer.

The question of layoff or restructuring does not arise as there is no overlap in the two companies' operations in the Middle East, Rodney O. Martin, Jr., Chairman and Chief Executive Officer of Alico, said in Dubai.

The insurance giant, on the other hand, is looking at adding 1000 more employees in 2010 as it did in 2009, notwithstanding one of the toughest years for the global economy and for the insurance industry, he said.

Martin, in Dubai as part of a global tour to apprise Alico's clients, distributors, regulators and employees on the "sixth largest deal in the history global insurance industry," said he expected the Middle East operations of the insurer would grow further. "We will continue to invest in people, going forward," he added.

In the Middle East, Alico has 1,600 employees, 14,000 agents and two million customers. "We did not lay off a single employee last year in spite of the many challenges posed by the crisis. We don't intend downsize in future too,"added Michel Khalaf, Alico's Chief Executive Officer for the Middle East, Africa and South Asia.

Speaking to Khaleej Times, Martin said he expected the MetLife-Alico deal to close by the fourth quarter 2010. His current mission is to outline the roadmap to full integration. "We want to communicate to all what we intend to do from now on as we move towards the deal's closure, and what we will be doing in the post-merger scenario."

Alico's parent company, the embattled American International Group (AIG), reached a definitive agreement on March 8 with MetLife to sell its foreign life insurance business to raise funds to repay huge government bailout.

"They (MetLife) are buying a growth story that is Alico," said Martin. "Despite all the challenges globally and within our group, we had a solid 2009," he said hinting at the year-end result that is to be announced soon. "The 2009 result is going to be one of the top four annual performances recorded in our 88-year-old history and reinforces our growth story. We are above the pre-crisis level. We could not have anticipated a much brighter picture," he said.

Martin argued that the acquisition was a win-win deal for both MetLife and Alico. "We look forward to a smooth transition and a bright future as part of MetLife's International Business team."

MetLife, which currently has operations confined to the US and parts of America, expects the landmark acquisition to give it beachheads in 47 nations. MetLife, already the largest life insurer in the United States and Mexico, also stands to boost the proportion of its international business to overall revenues to 45 per cent from the current 15 per cent. "Combined, the two will have presence in 70 countries, the largest footprint among global insurers, representing 90 per cent of the world population," Martin said.

The MetLife-Alico deal is the second proposed sale of a key subsidiary of AIG announced in a month to raise funds to repay the group's massive government bailout. AIG's Asian life unit, American International Assurance (AIA), was sold to Britain's Prudential Plc for $35.5 billion, the largest deal ever in the insurance sector. Founded in 1921, Alico sells accident and health insurance, life insurance and fixed annuities to about 20 million clients in 55 countries.

ALICO EYES JOINT MIDEAST OPERATIONS WITH METLIFE

Gulf News, Sunday March 21, 2010

Sale of AIG subsidiary to be completed in fourth quarter

Dubai : The fate of a great global brand, American Life Insurance Company (Alico) - whether or not it will continue or disappear - hangs in the balance and this could be decided next year, a top official hinted.

Alico's parent company, American International Group (AIG) - the troubled US insurance and financial services conglomerate - on March 8, announced that it will sell Alico to Metlife for approximately $15.5 billion (Dh57 billion).

The transaction includes all of Alico, including the company's approximately 60,000 points of distribution, including agents, brokers and financial institutions; 12,500 employees across more than 50 countries; and 20 million customers worldwide, the company said recently.

Realigning

Metlife is expected to close the transaction in the fourth quarter of this year, following which it will realign global business and is expected to decide on Alico's fate sometime next year.

However, the big question in the minds of millions of Alico's customers worldwide remains - will Metlife allow this great brand to disappear?

Alico's top man could not give a straight answer.

"There isn't any straight answer to this. What we can say at this point of time that they [Metlife] are going to be very thoughtful on the branding," Rodney O. Martin, Alico's Chairman and CEO, told Gulf News in an interview.

The transaction also includes Alico's Global Benefits Network serving US and foreign multinationals. In 2008, Alico had total revenue of $32.3 billion and $1.3 billion in after-tax operating income. As of December 31, 2008, Alico had $89 billion in assets under management.

To many, life insurance is synonymous with Alico, just as Jeep is to a four-wheel drive vehicle.

"In some markets, I expect, Alico and Metlife will work together. It's not a 'one size fits all' situation," he said.

"The acquisition gives Metlife easy excess to 50 new markets through Alico's great network.

Regional plans

"In the Middle East, which is a growing market, we expect Metlife and Alico to work together and offer new products and services. So we expect this synergy to bring in more business."

The US Federal Reserve on September 16, 2008, created an $85 billion credit facility to enable AIG to meet increased collateral obligations, in exchange for the issuance of a stock warrant to the Federal Reserve for 79.9 per cent of the equity of AIG.

The Federal Reserve and the US Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and $52.5 billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion. AIG subsequently sold a number of its subsidiaries and other assets to pay down.

Recalling the turbulent 18 months into the crisis, Martin said, "The road ahead was anything but straight. We spent more time in communication with our colleagues and customers.

"We did not have enough answers to questions in most cases. However, we are out of the situation now."

While the chips were down, morale also followed down south. However, Martin said, his team fought the situation together.

"It wasn't a walk in the park. There were challenges. However, we all knew it's a company worth fighting for," he said.

Growth continues

The Alico story began in 1921 in Shanghai, China. The company grew steadily in the early decades, moving its headquarters to Wilmington, Delaware in the late '60s.

In 1972 Alico became the first foreign life insurance company licensed to sell in Japan, the first step towards becoming a household name.

Expansion in Latin America, the Middle East and a liberalised European Union followed, and that growth story continues today. Alico now serves customers in over 50 countries.

How it all started

AIG history dates back to 1919 when Cornelius Vander Starr established an insurance agency in Shanghai, China. Starr was the first Westerner in Shanghai to sell insurance to the Chinese, which he continued to do until AIG left the country in early 1949 when China came under a communist regime. Starr then moved the company headquarters to its current home in New York City. The company went on to expand, often through subsidiaries, into other markets, including other parts of Asia, Latin America, Europe, and the Middle East. In 1962, Starr gave management of the company's lagging US holdings to Maurice R. Greenberg, who shifted its focus from personal insurance to corporate coverage. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent fees. In 2005, AIG became embroiled in a series of fraud investigations.

MIDEAST STAYS AN ATTRACTIVE MARKET FOR INSURANCE FIRMS

Emirates Business 24/7, Tuesday March 23, 2010

Middle East, Africa and South Asia contribute up to 15% of Alico's global business.

DUBAI - The UAE continues to be the biggest market for American Life Insurance Company (or Alico, part of the bailed-out American International Group or AIG) in the Middle East, says Rodney O Martin Jr, Chairman and CEO of Alico. In his first visit to Dubai after the announcement early this month to sell Alico to Metlife for approximately $15.5 billion (Dh57bn), he spoke in length to Emirates Business on the factors that led to the sell-off, the way ahead and the opportunities he plans to tap into within the region.

What contribution does the Middle East make to Alico's global business?

The top line and bottom line contribution of the MEASA (Middle East, Africa, South Asia) region ranges from 10 to 15 per cent in our global business. The Middle East continues to be a high growth region and has a lot more to generate - a much higher growth rate compared to mature markets around the globe. Over the years, this region has generated robust growth for us and we expect to continue that trend here. In the Middle East, the UAE is our biggest market and is well diversified, so we have managed to generate very significant growth here. Other countries in the region - the Gulf, Levant and Egypt, for example - have also seen good growth.

What do you plan to achieve after Alico is acquired by Metlife? What's the bigger vision?

Alico has around 12,000 employees globally and a large customer base geographically. Metlife, on the other hand, is a dominant domestic player in the US and has a presence in 16 countries. When we combine their presence in 16 countries and our presence in almost 55 countries, together we will cover around 70 countries, and almost 90 per cent of the global market. From our perspective, being part of one of the pre-eminent companies with a global platform will substantially expand our assets, as well as presence. We will have the largest global footprint, from day one, after the transaction.

Has the transaction been finalised and got shareholders' approval?

The deal has been finalised in terms of the announcement. The formal closing of the deal is expected in the fourth quarter of this year. The deal is going to take effect in phases - from the separation of Alico from AIG, to obtaining regulatory approvals for integration with Metlife.

Do you believe it is a distressed sale of Alico in order to generate cash, and is the deal more of a gain to Metlife than a loss to AIG?

Had this sale occurred in late 2008 or the early part of 2009 when the economic crisis gripped AIG, one could have easily viewed us as being in a very distressed situation. But the AIG board and the federal government took a longer and a more practical view, and were patient enough to allow the capital markets to recover before selling off two of its most valuable assets - Alico and American International Assurance (AIA).

Currently, at this point, global capital markets are in a more stable position than they were earlier and AIG has secured a fair and competitive price for both of these properties and Metlife too has got a very attractive growth property.

It's certainly a gain to Metlife and absolutely a loss to AIG. Given the unfavourable market conditions and the mounting obligations, AIG had no choice but to sell the two most substantial and valuable platforms (AIA and Alico). This is the sixth largest transaction of its kind in the insurance sector.

What has Alico contributed to AIG's global business?

Alico earned more than $2 billion (pre-tax) the year earlier (2008) and last year it was one of the biggest contributors to the group's profit in percentage terms. Taken together, both AIA and Alico were the most stable sources of revenue for AIG.

Before closing the deal with Metlife, did you engage in talks with other firms too?

We did. When we were deliberating on the path to independence from AIG, and looking for help to secure funding to repay to the federal government, we considered two options - whether to go for an IPO or a strategic sale. However, considering the capital market environment and the cycle that the company was facing, it was deemed appropriate to go for sale. We talked to a variety of companies during these times and it was not until last year that the board made a decision to accelerate conversations with Metlife, and we made the announcement to sell in March this year.

Looking back, do you think you could have got a fairer deal in terms of valuation?

I am very comfortable with this deal. When you look at the impact that Alico would have on Metlife, this deal is going to be a transformation for both of us. The only other option was an IPO, which was not very viable and interesting option for the board at that time.

Do you have plans to sell off any of your units going forward to meet the cash need for repayment?

No. We have had a long history of growing our company organically. Despite the crisis we were in, we didn't make any layoffs in 2009. In fact, we added around 1,000 employees. We are a growth company and will continue to be so and add around 1,000 positions in our organisation this year, at a time when many companies are going in the opposite direction. Our employee and customer retention levels also continue to be very high.

Would all your dues be paid off to the federal government and the Federal Reserve Bank of New York after this sell off to Metlife?

Once we close the transaction, the proceeds will go to AIG and the federal government and we'll have no further responsibilities. We will be completely separate from AIG and be fully a part of Metlife.

How much profit Alico is expecting this year?

We don't forecast future profit but we're about to publish our results for 2009, which is one of the best years in our history. Last year, we grew our business, and grew our assets, despite the global economic crisis and the crisis AIG was going through. In fact, this has been one of our 'finest hours'. And the Middle East is a good example of this performance, where we have a strong geographical footprint and a diversified portfolio. This solid performance is reflected in our 2009 results, where the numbers will speak themselves.

What are the growth markets for Alico?

Certainly the Middle East has been one of the growing markets for us. We're bullish about this region and these are very attractive markets for Alico. However, we are diversified not only geographically but in terms of assets and distribution network as well. Because of our diversification, we've benefitted from the economic crisis. Generally, when faced with a crisis, companies that are too dependent on one product may be out of the market, or they face a huge risk if they are reliant on a distribution channel that may not be functioning well in a crisis situation.

Life insurance business in the Middle East is underpenetrated compared to developed markets. Considering that, how did you manage to record good growth in the region?

I think it's because of this factor, that is, it was the under penetration of life insurance that helped us in posting good growth in the region. The products and services we provide meet every need of our customers and that's the reason why we continue to post profits in the region.

Going forward, we're bullish about the region because with the economic development here and with the emergence of a middle class, people are going to be in need of these products and the financial security that we provide.

Are you going to launch new products?

We're always in the process of assessing our product portfolio compared to the emerging needs in the market and we've a long history of product innovation worldwide, as well as in the region. Since the beginning of this year, we've launched a couple of new products in the UAE and other countries in the region.

What are your plans for this region?

The immediate plan is finalising the deal with Metlife and separating Alico from AIG by the end of Q4, and obtaining the required regulatory approval. Metlife is a large, financially secure and skilled group, and is strong in group and medical products, which could be interesting for the Middle East. We have accident and health products that would be of interest to Metlife in their existing markets, so we are highly complementary.

This is a growth region and we are looking for higher levels of growth here than in mature markets. This transaction is very positive for the region and will make us bigger and stronger, with more know-how, new ideas and new products and services for customers.

We have been in the Middle East for a longp time - with a continuous presence - and we are committed to the region.

Middle East to be a "growth engine" for Alico/MetLife as the regional insurance industry begins to mature

April 2010 - The planned sale of Alico to Metlife, and the integration of the two companies, will open new business opportunities for the combined operations and contribute to the development of the regional insurance industry, according to Alico. MetLife's acquisition of Alico, announced on 8th March 2010, is expected to close in the fourth quarter of 2010, pending receipt of the necessary regulatory approvals.