American International Group said MetLife agreed to modify their agreement in connection with the sale of American Life Insurance Co. (ALICO) so AIG can sell MetLife equity securities earlier than permitted in the original terms of the sale.

MetLife says its completion of an acquisition of American Life Insurance Co. (ALICO) makes it a “global life insurance and employee benefits powerhouse.”

American International Group has decreased the money it owes the Federal Reserve Bank of New York by $4 billion and its CEO says he sees “light at the end of the tunnel.”

MetLife Inc will sell more than $3 billion of stock – or 50% more than it planned – to fund its acquisition of American International Group’s foreign life insurance business of American International Group, according to Reuters.

American International Group said it plans to adhere to the original terms of a deal where it would sell its American International Assurance Co. (AIA) unit to Prudential plc for $35.5 billion and not renegotiate a price.

The president and CEO of American International Group told a congressional panel that not only would the insurer repay the more than $132 billion it was loaned by taxpayers, but would pay more than it received.

As it works to stabilize its operations and repay billions in federal bailout funding, American International Group reported $1.5 billion in net income through its core insurance business for the first quarter of 2010.

A pair of recent deals has American International Group’s chief executive officer confident that the insurer can repay the government for bailout funds by 2013.

MetLife has announced it has approved a $1.5 billion payment in policy dividends to eligible life insurance policyholders through its Metropolitan Life Insurance Co.

In a move it says is “an important step toward repaying the government,” American International Group has agreed to sell its international life insurer to MetLife for $15.5 billion.