AIG repays government another $2.15 billion
NEW YORK (Reuters) - Bailed-out insurer American International Group said on Thursday it closed the sale of its Taiwanese life insurance business and used the proceeds to repay the government another $2.15 billion.
The money went toward paying down the government's preferred interest in the entity that controls AIG's one-third stake in Asian insurer AIA Group, which AIG spun off in an initial public offering last year.
AIG's bailout at one point totaled $182.3 billion. The government's investment now stands at $51 billion -- the 77 percent of AIG's common stock held by the U.S. Treasury, and the remaining $9.3 billion in preferred interests in the AIA entity.
AIG said it closed the sale of Nan Shan to Ruen Chen Investment Holding for $2.16 billion cash. The Nan Shan sale was prolonged by the Taiwanese government's rejection of AIG's first-choice buyer.
With Nan Shan closed, AIG's last major disposal will be International Lease Finance Corp, or ILFC, which buys airplanes and leases them to airlines. The company is looking at an IPO for ILFC later this year.
The proceeds of the ILFC sale may be used to pay off the remaining Treasury interest in the AIA vehicle, which would let AIG keep that one-third interest in the company instead of selling it. The AIA stake was responsible for most of AIG's net profit in the second quarter.
AIG shares closed down 8.7 percent at $22.70, more than 20 percent below the government's break-even point on the stock.
(Reporting by Ben Berkowitz, editing by Matthew Lewis)
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