Prudential in talks for AIG's Japan unit-source

NEW YORK, July 15 (Reuters) - American International Group (AIG.N) is in talks with a Prudential Financial Inc (PRU.N) unit to sell two Japanese life insurers, a person familiar with the matter said on Wednesday.

The talks for AIG Edison Life Insurance Co and AIG Star Life Insurance, which were put on the block last year, have been going on and off for a long time, but heated up in the last few weeks, said the source, who asked not to be named because the talks are private.

Prudential has bid through Japanese subsidiary Gibraltar Life Insurance Co, the source said.

AIG declined to comment. Prudential was not available to comment. (Reporting by Paritosh Bansal and Lilla Zuill) (For more M&A news and our DealZone blog, go to www.reuters.com/deals)