Manulife to buy AIG Canada! There, I said it first. 
Of course, that comment is complete speculation on my part!
AIG Life of Canada today released a document to it’s partners, a copy of which can be read here.. Two things it points out. First, the US government has bailed out the parent company in the US.
Secondly, as part of that bailout they expect to sell off their non-core businesses off, including quite likely AIG Life insurance Company of Canada.
SO! AIG Life insurance Company of Canada is for sale. And who’s big enough to buy them?
Manulife.
Manulife is now the largest life insurance company in the world (since AIG’s decline). They seem to be weathering this financial crisis just fine. Furthermore Manulife has a voracious appetite for buying life insurance companies. Well, they call it ‘merging’ but when Manulife ‘merges’ with another life insurance company, the resulting company is always called ‘Manulife’ :).
In the last couple of decades Manulife has bought just about every Canadian life insurance company that could be bought. And they’ve bought aggressively into the US as well - John Hancock being one example. Unfortunately the list of companies available to be taken over has shrunk to virtually nobody recently. The opportunity to take over a large block of business in short order likely has the execs at Manulife rubbing their hands with glee.
There’s your speculation for the day. We know AIG is up for sale, we know Manulife is big enough and bad enough to buy them out. And ultimately should that transpire that can only be good for AIG policyholders.
(*) Manulife buying out AIG is pure speculation on my part. I bet I’m right but it’s speculation nonetheless.