AIG Star Life Insurance Co. and AIG Edison Life Insurance Co. said Wednesday they will shelve their merger plan while parent company American International Group Inc. is negotiating the sale of the two Japanese insurance arms.
In the first round of bidding, U.S. financial services firm Prudential Financial Inc. and Canada's Manulife Financial Corp. applied as possible buyers of the Japanese units. AIG is trying to close the deal by early next year, officials at the companies said.
Both Prudential and Manulife run life insurance arms in Japan. AIG Edison and AIG Star were to merge on Jan. 1.