American International Group announced Monday it has reached anagreement to sell its international life and health insurance unitAlico to MetLife for approximately $15.5billion.

MetLife will pay $6.8 billion in cash and the remainder inequity securities. The cash portion will be used to pay down a$47.9 billion investment in AIG by Federal Reserve Bank of NewYork.

"This sale is an important step toward repaying the government,"said Harvey Golub, chairman of the AIG board of directors, in astatement released Monday. "Alico is a unique international lifeinsurer, and we view this as a terrific combination that willfurther enhance the company's potential over the long term."

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