The US Treasury has reduced its holding in American International Group, an insurance organisation, following the group’s sale of Nan Shan Life Insurance Company, Ltd. The sale was made to Ruen Chen Investment Holding Co., Ltd for $2.16 billion in cash.
AIG President and Chief Executive Officer Robert H. Benmosche said:
“We continue to make progress in helping the Treasury and taxpayers recoup their investment in AIG. We are pleased to have completed the sale of Nan Shan to Ruen Chen – a great result for American taxpayers, for AIG and for Nan Shan’s policyholders, employees and agents.”
The US Treasury confirmed that it had received a repayment of $2.16 billion, stating:
“During the financial crisis, the U.S. Government’s support for AIG totaled approximately $180 billion… After today’s repayment, the U.S. Government’s remaining outstanding investment in AIG through Treasury is $51 billion…
“…In January 2011, AIG completed a recapitalization transaction which resulted in AIG repaying all the outstanding loans provided by the Federal Reserve Bank of New York. Also at that time, Treasury received 1.655 billion shares of AIG common stock (approximately 92 percent of AIG’s outstanding common stock) and $20.4 billion in preferred equity interests in AIG. Since then Treasury has sold 200 million shares of AIG for proceeds of $5.8 billion and AIG has made payments to Treasury, including the repayment announced today, of $11.4 billion on the preferred equity interests.”
The US Treasury disbursed a total of $412 billion through the Troubled Asset Relief Program.