NEW YORK (Bloomberg) — American International Group Inc., the insurer peddling units to repay a US government loan, agreed to sell its Philippine retail bank and auto-lending unit to East West Banking Corp.

The deal to sell PhilAm Savings Bank, PhilAm Auto Finance & Leasing and PFL Holdings is expected to be completed in the second quarter, the companies said yesterday in a joint statement. New York-based AIG will get $48.5 million for the businesses, according to a person familiar with the situation who declined to be identified because terms weren't released.

AIG has to sell businesses including a jet-leasing unit, insurance operations in the US and Asia and an asset manager to repay a $60 billion loan included in its $150 billion bailout package. The company struck deals to raise about $2.2 billion so far by selling operations including equipment insurer Hartford Steam Boiler.

PhilAm Savings had deposits of P9.7 billion ($205 million) at the end of 2008, the companies said. It has nine branches in the Philippines, including six in the Manila area. East West is owned by Filinvest Development Corp., which has businesses including real estate, banking and sugar.

Oslec Lopez, a spokesman for East West, didn't immediately return a call seeking comment. AIG's Joseph Norton declined to comment.