American International Group (AIG) has emerged as a potential buyer for Chiyoda Life after the Japanese life assurance company filed for court protection yesterday - with liabilities of 2,936.6 billion yen - in the industry's biggest post-war failure.

AIG, the largest and oldest foreign insurance company in Japan, notified Chiyoda that it is prepared to offer support. Its interest comes during a time of growing foreign involvement in Japan's insurance sector.