American International Group Inc. on Monday announced a definitive agreement to sell American Life Insurance Co. to MetLife Inc.

According to a press release, MetLife will pay approximately $15.5 billion, including $6.8 billion in cash and the remainder in equity securities. The price of the deal is subject to closing adjustments.

AIG said that the cash from the deal will be used to reduce the liquidation preference of the Federal Reserve Bank of New York in the special-purpose vehicle formed by AIG and the Federal Reserve Bank to hold the interests in Alico.

Alico, which was founded in 1921, serves consumers and businesses. It has 60,000 points of distribution, including agents, brokers and financial institutions; 12,500 employees across more than 50 countries; and 20 million customers worldwide. At the end of Dec. 31 it had $89 billion of assets under management.

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