(Thumbnail Image: New York Daily News)

"Troubled insurer AIG is selling AIA, it's Asian insurance business, to Prudential for $35.5 billion including $25 billion in cash." (Forbes)

AIA has been called AIG's crown jewel because of its performance and potential in a fast growing market. So why sell? CNN offers an explanation.

Reporter: "AIG owes the U.S. government over $100 billion, it was trying to sell part of AIA on the Hong Kong stock market, raising somewhere between 10 to 20 billion dollars, but a deal with Prudential would bring in much more than that."

News of that buyout helped raise the U.S. stock market to its highest levels in a month. But the U.K.'s Prudential's stock fell as investors got skiddish.

CNBC analysts on Fast Money discuss who wins and loses.

Tim Seymour: "AIG has to sell assets, we all know that, but they're selling to a guy who's got cash to spend on this deal and it is strategic as strategic goes, I mean this is a fantastic asset for Pru. They win by the way.

Gary Kaminsky: The point I'm trying to make is that this is just a one-sided deal, it's a strategic deal for Pru, it's cash for you and I as tax-payers, but I look at AIG more as a liquidating trust as opposed to a strategic company that's trying to grow their business."

So for Prudential, this is a big move. The U.K.'s Sky News says the purchase will essentially double the size of the company.

"It will be one of the biggest takeovers of a foreign company ever by any British company and it will require to help fund the takeover of AIA, the biggest rights issue, the biggest fundraising ever undertaken by a U.K. company."

But since the announcement, Prudential's stock has fallen by about 20 percent partly because of the fundraising needed to buy AIA. The Guardian talks to investors who are raising concerns about the stock sell-off.

"Further falls would force the company to issue a larger number of shares to reach the needed £14bn ($20 billion) which would further dilute existing shareholdings."

But a Telegraph commentator focuses on the significance of the deal and how it could affect the U.K.

“All the same, this is about a massive reallocation of capital from maturing western markets to faster growth emerging markets. … to finance the Prudential acquisition, sterling is going to have to be swapped en masse for dollars.”

Writer: Erika Roberts

Producer: Newsy Staff