Moody's: Alico view to stable

Moody's Investors Service said it affirmed the A1 insurance financial strength rating of American Life Insurance Co. (Alico) and changed the outlook to stable from developing. The rating action follows news that American International Group, Inc. signed a definitive agreement to sell Alico to MetLife, Inc. for $15.5 billion in cash and stock. The transaction is scheduled to close in the fourth quarter of 2010, subject to regulatory and other approvals, the agency said.

The affirmation and stable outlook are based on the resolution of its ownership uncertainties, given the planned acquisition by MetLife, as well as the recent stabilization of its business fundamentals, Moody's said.

The resolution of Alico's ownership, which had clouded its business prospects, will be a key factor behind its return to growth as a strategic part of MetLife when the global economy improves, the agency said.

Mitigating these strengths are the risks involved with separating Alico from AIG over the near term, Moody's said, and successfully executing the integration of its global operations and systems into those of MetLife.

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