The failed Chiyoda Mutual Life Insurance Co. said Monday that it has gained formal approval from the Tokyo District Court for its rehabilitation program, under which it will make a fresh start in mid-April as AIG Star Life Insurance Co. under the sponsorship of American International Group Inc.
Chiyoda, which failed in October, plans to cover its negative net worth, or excess of liabilities over assets, with its policy reserves and capital contribution from AIG, it said.
The insurer's negative net worth is almost confirmed at 311.9 billion yen, administrators of the company said last month.