American International Group Inc. (AIG) has decided not to sell its Japan units, AIG Star Life Insurance Co. and AIG Edison Life Insurance Co., the company said in a press release Friday.

The New York-listed company, bailed out from bankruptcy by the U.S. government, announced in October last year it would offload its three Japanese life insurance subsidies as part of its rehabilitation plans.

"I have come to believe that we can obtain the greatest value for AIG Star and AIG Edison by continuing to operate and grow these companies as part of AIG," said Chief Executive Robert Benmosche.

According to a Tokyo-based company spokesman, the status of AIG's other Japanese unit, Alico Japan, remains unchanged.

"We will continue to explore strategic options for Alico Japan, such as selling it, or via a public listing," he said.

 
   -Tor Ching Li, Dow Jones Newswires; 813-6895-7565, chingli.tor@dowjones.com