Jan. 4--American International Group Inc. is selling an insurance unit that it operates in Neptune in a deal that could lead to layoffs at the Route 66 office.

Aegon Direct Marketing Services Inc. agreed to purchase AIG's credit life and disability insurance unit for an undisclosed amount, the companies said Wednesday.

The deal, which needs approval from insurance regulators in several states, is expected to be completed by the end of the first quarter.

"It will affect some positions, but that won't take place until the deal meets regulatory approval 60 to 90 days from now," said Peter Tulupman, a spokesman for AIG in New York.

The unit, called AIG American General's Financial Institution Solutions, has about $100 million in premium volume. Tulupman wouldn't disclose how many people work in that unit.

As of 2005, AIG had about 750 employees in Neptune. Its other divisions there aren't affected, Tulupman said.

Aegon Direct Marketing Services, part of Netherlands-based Aegon, will assume AIG's credit life and disability insurance. That is a type of insurance bought by borrowers that would pay off a loan -- a credit card, automobile or home, for example -- in case the borrower is disabled or dies.

The business is a relatively small segment of the insurance industry, but it is growing steadily. Consumers in 2005 paid $1.2 billion in credit insurance premiums, up 9 percent from 2004 and 44 percent from 2003, said Robert Hartwig, president of the Insurance Information Institute, an industry research group in New York.

"This coincides with the explosion in consumer debt," Hartwig said. "Many people recognize they're carrying more debt than ever before, and their family is more exposed to financial ruin."

The Aegon division that will take over the Neptune office has operations in Baltimore; Frazer, Pa.; Atlanta and Plano, Texas.

When asked about potential layoffs, Veronica Mouring, a spokeswoman for Aegon Direct Marketing Services, said the company didn't have anything planned. She said the deal would help the company expand its customer base.

"It's in complementary product and market segments where ADMS already has expertise," Mouring said. "What it will do is bring scale to those markets. It brings new clients and expands our distribution network."