The News Journal

Delaware Insurance Commissioner Karen Weldin Stewart has approved the sale of American International Group's last large Delaware-based business, the international life and health insurance company Alico.

AIG is selling the unit to MetLife for $15.5 billion as part of an effort to repay billions in federal aid. Last year, AIG sold its Delaware-based auto insurer 21st Century Insurance Group to Farmers Insurance Group for $1.9 billion, also to pay down government obligations.

The Alico deal, which includes another AIG unit, Delaware American Life Insurance Company, or DelAm, includes $6.8 billion in cash, with the balance in equity. It was announced in March.

Stewart's office said the federal government and regulators in 13 other states and 35 countries must sign off for the deal to go through. It's expected to close in the fourth quarter of this year, according to Stewart's chief financial examiner, Linda Sizemore.

AIG did not immediately respond to a request for comment.

Alico, known as one of the world's largest and most diversified international life insurance companies, has performed well even as its parent, AIG, teetered during the recession and nearly collapsed.

Alico's main office tower on King Street in Wilmington employs about 350 people, according to the most recent numbers provided by AIG. At one point, AIG employed at least 1,400 in the state, but employment fell by more than half to about 620 between 2001 and 2004. As of mid-2005, AIG's Delaware employment stood at 700.

In a news release issued Tuesday, Stewart's office said Alico and DelAm employ 450 people in Delaware.

No immediate impact had been expected at Alico's Wilmington headquarters.

Stewart said MetLife has agreed to retain an "operational presence" in Delaware.

"After a full review of the record, I am satisfied that this transition will be seamless and beneficial for the policyholders," Stewart said. "I am also thankful that MetLife has agreed to retain the operational presence in Wilmington, Delaware, preserving jobs for Delawareans."

Staff reporter Eric Ruth contributed to this story.
Contact Jonathan Starkey at 324-2855 or jstarkey@delawareonline.com.