AIG has finalised the sale of its Japanese life insurance subsidiaries, AIG Star and AIG Edison, to Prudential Financial.

The sale, worth $US4.8 billion ($4.74 billion), was first flagged in September.

In a statement at that time, AIG CEO Robert Benmosche said the sale represents “a key milestone” in AIG’s program to repay the US Government after its bankruptcy bailout in 2008.

AIG intends to retain and continue to grow its remaining insurance businesses in Japan.

AIG Star and AIG Edison sell life, medical and annuity products through agents, corporate and bancassurance channels.