MANILA - A PHILIPPINE unit of troubled American Insurance Group (AIG) said on Friday it was selling its local health insurance and pension operations to focus on its core life insurance business.

PhilamCare Healthy Systems Inc. and Philam Plans Inc., which provides pension, education and life plans, will be sold off to Philippine companies, Philippine American Life and General Insurance Co. (Philamlife) said.

The costs of the transactions were not disclosed A Philamlife spokeswoman told AFP PhilamCare had end-2008 assets of 794 million pesos (S$23.5 million), 239 million pesos in stockholders equity, and revenues of 1.05 billion pesos.

Philam Plans had more than 300,000 policies in force at the end of 2008 and a trust fund of 30 billion pesos, she added.

Philamlife, the country's largest life insurer, was last year set to be sold off to raise money for the payment of US government loans that had been extended to save AIG from collapse amid the global financial crisis.

But it revised the plans and it will now become part of AIG's Asian life insurance businesses, known as the AIA Group.

It has also signed an agreement to acquire a 51 per cent stake in Ayala Life, the Philippines' number-seven industry player, for US$27.66 million (S$39.8 million).

The sale of the healthcare and other units is part 'of our strategy to focus on core life insurance and wealth management operations as we move towards becoming part of the AIA Group,' a Philamlife statement said. -- AFP