AIG to Vacate Tokyo Office, Book $1.4 Billion Gain

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American International Group Inc., the insurer bailed out by the U.S., will vacate an office building in Tokyo next month and record a $1.4 billion gain on the transaction in the fourth quarter.

AIG agreed in May 2009 to sell the property, which includes a 15-story building overlooking Japan’s Imperial Palace and an acre of land, for about 115.5 billion yen and remained a tenant of buyer Nippon Life Insurance Co. The deal wasn’t booked as a sale under U.S. accounting rules because AIG was still leasing in the building, the New York-based firm said yesterday in a filing.