American International Group, the largest underwriter of commercial and industrial insurance in the US, has expanded its operations with the purchase of General Electric's Edison Life Insurance Company, based in Japan, and GE's US-based auto and home insurance business.
AIG said the entire deal would cost it about $2.15bn (£1.4bn).
The acquisition of the Tokyo-based life insurer, which is ranked around 15 in Japan's life insurance industry, is another step in AIG's campaign to become the world's top life insurer.
For GE, the deal marks the start of its effort shed some of its insurance operations. The company said earlier in August that it would recognise an after-tax gain of $150m (£95.1m) for the sale of the life unit.
The Japanese firm will be renamed AIG Edison Life Insurance Co, subject to Japanese regulatory approvals.
The GE property casualty insurance companies acquired by AIG will operate together with AIG's domestic personal lines subsidiaries.
