The Federal Reserve Bank of New York and American International Group Inc. agreed to shoulder as much as $450 million in losses tied to the insurer's Japan real estate bets as part of its sale of a division to MetLife Inc.

MetLife won an accord to split most declines in value on $1 billion in commercial mortgages included in the $15.5 billion purchase of the AIG unit, American Life Insurance Co., according to a MetLife regulatory filing and the company's chief financial officer.

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