(Reuters) - Bailed-out insurer American International Group Inc (AIG.N) will sell its shares in Asian insurer AIA Group Ltd (1299.HK) after a lock-up period expires in early September, Chief Executive Bob Benmosche said on Wednesday.
Benmosche said the shares “will be liquidated after September 4,” according to a transcript of AIG’s annual shareholder meeting on its website. He said the sale would help decrease volatility in AIG’s earnings.
AIG spun off two-thirds of AIA in 2010 as part of a package of asset sales to repay its $182 billion U.S. government rescue. Fluctuations in AIA’s share price have caused large swings in AIG’s earnings since then, with quarterly gains or losses of more than $1 billion commonplace.
AIG sold part of the stake in March, raising around $6 billion and leaving it with 18.6 percent of AIA, one of Asia’s three largest insurers.
Since that sale, which included the lock-up provision, AIA shares have fallen 2.8 percent. At current levels the remaining stake is worth $7.6 billion.
Reporting By Ben Berkowitz; Editing by Gerald E. McCormick and John Wallace