American International Group’s plan to sell its Asian life insurance division to the British firm, Prudential PLC, has fallen apart, according to the U.S.-based insurer.

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 Jackson National Life Insurance Co. set a company record for monthly variable annuity sales in March, logging more than $1.3 billion.

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.

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.

A lingering tax issue may soon be resolved, paving the way for American International Group to sell its foreign life insurance unit to MetLife for $15 billion.

American International Group agreed to sell its Asian life insurance business for $35.5 billion, making it one of the largest insurance deals in history.