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Asia: Prudential - AIG Japan; ACE - N.Y. Life Korea

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Prudential Financial Inc. has completed previously announced acquisitions of two Japan-based units of American International General Inc. (AIG).

Prudential, Newark, N.J. (NYSE: PRU), says the company is paying a total of about $4.8 billion for AIG Star Life Insurance Company Ltd., Tokyo, and AIG Edison Life Insurance Company, Tokyo.

Prudential is paying AIG, New York (NYSE:AIG), about $4.2 billion in cash Earth - symbolizing international insurance dealsand assuming $600 million in third-party debt.

Prudential says it expects to repay “substantially” all of the debt with excess capital from the acquired entities. The transaction will not affect the policies or rights of Star and Edison customers, Prudential says.

Star and Edison will operate as subsidiaries of Gibraltar Life Insurance Company Ltd., one of Prudential Financial’s life insurance companies in Japan.

Star and Edison’s bancassurance channels will be transferred and integrated with Prudential Gibraltar Financial Life Insurance Company Ltd., a subsidiary of Gibraltar that operates in Japan’s bancassurance market.

Prudential hopes to merge and integrate Gibraltar and the core operations of Star and Edison, excluding the bancassurance business, into one entity during the first quarter of 2012, Prudential says.

Until the merger is complete, Star and Edison will continue to use their existing legal names.

Toru Matsuzawa, previously vice chairman of Prudential Gibraltar Financial, has been named president of Edison.

Star will continue to be led by the current president, Norio Tomono.

AIG says it will keep and continue to expand its remaining insurance businesses in Japan.

In other international acquisition news, ACE Ltd., Zurich, has completed previously announced plans to acquire the Korean operations of New York Life Insurance Company, New York, for $75 million in cash.

The original October 2010 purchase agreement with New York Life was amended to allow for separate closings for the Korea and Hong Kong operations, ACE says.

ACE hopes to close on the New York Life operations in Hong Kong by March 31.

“The agency-based operations that New York Life has established in Korea will provide a good foundation on which to build our life insurance business in this important country,” ACE Chairman Evan Greenberg says in a statement about the deal.